Govt achieves 60% of divestment target; raises Rs 23,500 cr

Moneycontrol Bureau

The government has managed to garner over Rs 23,500 crore through selling its stake in public sector enterprises during the first nine months of the current fiscal, representing nearly 60 percent of the disinvestment target, said Manish Singh, Joint Secretary, Department of Investment and Public Asset Management (DIPAM). “We still have almost two and half months to achieve the target. So far this year, we have done minority stake sales and buybacks. For the rest of the fiscal we have a strong pipeline of 40 odd companies including SU-UTI stake,” said Singh adding that divestment for the rest of the fiscal year will depend on how the market pans out.

Government had pegged disinvestment target at Rs 56,500 crore for 2015-16.

In the first week of November, the government raised Rs 2,100 crore by selling stake in Larsen & Toubro held through Specified Undertaking of the Unit Trust of India (SU-UTI), 

The Joint Secretary also said that during the current financial year 2016-17, the government has so far realized Rs 23,500 crore, which includes Rs 21,400 crore through minority stake sale in 14 CPSEs.

The major divestments during the current fiscal include the 15 percent stake in National Buildings Construction Corp, which yielded over Rs 2201 crore, the NHPC offer of sale (OFS) that realised more than Rs.2,717 crore, NMDC buyback realising over Rs 7,519 crore and the buyback of shares by Coal India that earned the government Rs 2638.24 crore.

Singh further said government has given in-principal approval for strategic investment in ‘certain companies’ without revealing more details about companies.

He also said that the government is working with The Securities and Exchange Board of India to change the mechanics of offer for sale.