Divestment road map in the next 3-4 weeks

Divestment road map in the next 3-4 weeks
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First Published: Wed, Jul 15 2009. 11 53 PM IST
Updated: Wed, Jul 15 2009. 11 53 PM IST
New Delhi: The government will bring out a road map for disinvestment in public sector firms in the next three-four weeks, a senior government official said on Wednesday.
“The road map in terms of disinvestment has (been) worked out...and we are discussing it with other ministries. It will come out in three to four weeks, ” said finance secretary Ashok Chawla.
Chawla’s announcement comes in the wake of Pranab Mukherjee’s announcement in Parliament on Tuesday that details of the government’s disinvestment scheme are being worked out and would be announced soon.
The government hopes to raise Rs1,120 crore from disinvestment by 31 March. Firms where it will sell a small part of its equity include RITES Ltd, Cochin Shipyard Ltd, Telecommunications Consultants India Ltd, Manganese Ore (India) Ltd, Rashtriya Ispat Nigam Ltd and Satluj Jal Vidyut Nigam Ltd.
State-owned Oil India Ltd and NHPC Ltd are expected to sell shares to the public in August or September.
Chawla also said the government’s debt sales wouldn’t strain the bond market as the entire amount will not come from market borrowings. “The market certainly has appetite because of excess liquidity in the market. The RBI (Reserve Bank of India) will at a later stage support (the government’s efforts) more through the open market operations. We are meeting RBI tomorrow morning to discuss the borrowing plan.”
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First Published: Wed, Jul 15 2009. 11 53 PM IST