GoI's plan to meet disinvestment target a mockery: Udayan

In a bid to meet its divestment target for the fiscal year, CNBC-TV18 learns that the government has asked public sector banks and LIC to buy 5-10% stake in other public sector units. Managing editor, Udayan Mukherjee says this ploy is a mockery. But, it's a desperate government and it needs cash and therefore it's leaning on anybody who has cash in its kitty.

The first question that we should ask is to the managements of these companies, and that is if any of them would use the cash in their balance sheet to do a buy back or a cross holding into other public sector companies. The answer to that I think would be unequivocally no, and if that is the case then why is the government leaning on them? A couple of days back, a very amusing report suggested that the government will engage Coal India in a discussion to see what their views are on a buy back. It's more like wielding a stick at them and saying