Govt to sell equity in PSUs like SAIL, MMTC; to get Rs 30K cr
The Government is proposing to sell equity in blue-chip companies like SAIL, MMTC, Neyveli Lignite, Nalco and Oil India to achieve the disinvestment target of Rs 30,000 crore for 2012-13.
New Delhi: The Government is proposing to sell equity in blue-chip companies like SAIL, MMTC, Neyveli Lignite, Nalco and Oil India to achieve the disinvestment target of Rs 30,000 crore for 2012-13.
The government, Finance Secretary R S Gujral said, has identified about a dozen companies including like NBCC, RINL, BHEL, HAL and HCL for share sale in the next fiscal.
"The target is very much achievable. The Cabinet has already approved disinvestment proposal in some companies. So, we have a headstart before the start of the year (2012-13)," he said.
A whopping Rs 40,000 crore disinvestment target was set by the government for 2011-12, but it could only mop up around Rs 14,000 crore mainly because of poor market conditions throughout the year.
He said traditional modes like IPO (Initial Public Offer) and FPO (Follow on Public Offer) would be considered for raising the target.
"IPO or FPO is the normal procedure and that are to be followed. Buy-back is just enabling provisions. The government approved these in order to create an enabling environment at par with what is there for private sector," Gujral said.
Disinvestment secretary Halim Khan said while a minimum of 10 percent stake would be divested in companies that would go for initial public offering, in case of FPO candidates, 5-10 percent stake would be divested.
"NBCC is already there in the pipeline. RINL, if they have to retain Navaratna status, have to list by November. The approval of the Cabinet is already there for BHEL, so it can be another candidate," Khan said.