New Delhi: A possible fund mobilisation of about Rs10,000 crore through planned initial public offerings and strategic stake sales in select public sector entities can help the government lower its fiscal deficit by a quarter percentage points in the current fiscal, a report says.
“If the new government manages to mobilise around Rs10,000 crore through lined up public offers and strategic sales in FY10, it can lower fiscal deficit by about 25 bps (basis points) Religare Hichens Harrison said in a report adding PSEs which were identified for disinvestment in the past, but were later shelved, may go under the hammer first.
With fiscal deficit ballooning to over 6% of GDP last fiscal, and is expected to remain high this fiscal as well, divestment “is a large window of opportunity for the next government to bolster its finances,” the report said.
“Firstly, there are those PSEs which have filed for a public issue with Sebi, but are yet to see the light of day on the primary markets. These include Rites, National Hydro Power Corp, Bharat Oman Refineries, UTI Asset Management Company and Oil India,” the report said, while noting that these five alone have potential to raise over Rs12,000 crore of funds.
Besides, there are about 25 PSEs recommended by the Disinvestment Committee which can be potential targets of divestment and there are those PSEs which were slotted for disinvestment but for which the process was later called off for various reasons, the report added.