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Selloff in 12-15 CPSUs next fiscal: finmin official

Selloff in 12-15 CPSUs next fiscal: finmin official
PTI
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First Published: Wed, Mar 10 2010. 05 59 PM IST
Updated: Wed, Mar 10 2010. 05 59 PM IST
New Delhi: The government is likely to go ahead with divestment in 12-15 public sector units, including SAIL, Coal India, Hindustan Copper, SJVNL and EIL among others next fiscal to raise Rs40,000 crore, as stated in the budget.
The selloff roadmap for the next fiscal will be prepared by the end of next month and may include BSNL as well, a key finance ministry official said.
“Roadmap will be prepared by April-end...We have earmarked 12-15 companies. We will have to raise Rs40,000 crore so it will be 12-15 companies,” disinvestment joint secretary Sidhartha Pradhan said here on Wednesday.
He said divestment in some of these companies will be through initial public offers while in some others it will be follow-on public offers.
Pradhan further said disinvestment in Satluj Jal Vidyut Nigam would be carried out in April, Engineers India in May-June, SAIL in August-September and Coal India around the end of the year.
He pointed out that SJVNL has already filed the draft red herring prospectus with the Sebi and the approval from the market regulator is expected by this month-end. The cabinet has already cleared disinvestment in EIL.
On a query whether divestment in telecom gaint BSNL can be done next fiscal, Pradhan said, “yes it could (BSNL divestment). We are still waiting for the telecom ministry to formally inform us what is the extent of divestment.”
The Budget has upped the revenue target from sale of government equity in CPSUs at Rs40,000 crore in 2010-11 from the Rs25,000 crore targeted in the current fiscal.
The government has already diluted its stake in Oil India, NHPC, NTPC, Rural Electrification during the past two quarters, while mineral giant NMDC issue opened Wednesday
As per the cabinet decision, all listed profitable PSUs should have a public holding of at least 10% and all profitable unlisted CPSUs should be listed. As per the criteria, 60 state-run companies are eligible for disinvestment.
Revenue secretary Sunil Mitra has said he does not anticipate any backlash from PSU employees against divestment in state-run companies and the target of Rs40,000 crore next fiscal is ‘modest’ and achievable.
Before taking charge as revenue secretary, Mitra was with the secretary disinvestment.
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First Published: Wed, Mar 10 2010. 05 59 PM IST