Govt may mull higher public float for PSUs in FY12: Sources

The government may consider upping the mandatory 10% public float for public sector units in fiscal 2012, sources from the finance ministry inform CNBC-TV18. The ministry had announced mandatory 25% float in June 2010.

With divestment continuing to be the thrust area for the government, its move to hike divestment will help mop-up resources in FY12. Sources further inform that the scope to raise tax rates sharply is limited to some extent. Also, non-tax revenues will boost fiscal consolidation efforts as per sources from the ministry. At least eight to nine PSUs may see initial public offers and follow-on public offers in FY12, while companies including RINL, MMTC, PFC and NBCC will factor in the sell-off list, sources add.