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Money from SAIL, ONGC divestment to be included for FY11

Money from SAIL, ONGC divestment to be included for FY11
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First Published: Mon, Feb 28 2011. 04 00 PM IST
Updated: Mon, Feb 28 2011. 04 00 PM IST
Mumbai: The Rs67,000 crore raised through the 3G allocation has offered the government the flexibility to postpone two of its follow-on public offers (FPOs) by India’s largest steel maker Steel Authority of India Ltd (SAIL) and Oil and Natural Gas Company Ltd.(ONGC) to the next financial year.
The earlier plan was to raise Rs20,000 crore by 31 March, 2011 by selling fresh shares.
Announcing the budget proposals on Monday, finance minister Pranab Mukherjee said while the government had raised around Rs22,144 crore in the current financial year ending 31 March, 2011 by selling shares of state owned companies, it will retain the same target of Rs40,000 crore as the target for next financial year ending 31 March 2012.
“A higher than anticipated realization in non-tax revenues has led us to reschedule some of the divestment issues planned for the current year,” Mukherjee had said on Monday.
The Government will not meet the Rs17,237 crore shortfall in the disinvestment target of Rs40,000 crore that it set for this FY.
“With the current unfavourable market conditions, the government has pushed the SAIL and ONGC FPOs,” an i-banker involved in the SAIL FPO had told Mint last week.
Through the SAIL and ONGC FPOs, the government had expected to raise around Rs8,000 crore and Rs12,000 crore respectively.
The government has sold shares in hydro power producer SJVN Ltd, Engineers India Ltd, Coal India Ltd, Power Grid Corporation, Manganese Ore India Ltd and Shipping Corporation of India Ltd. The total amount it raised in financial year ended 31 March, 2011 is almost 9% lesser that Rs25,000 crore raised by the Government in FY 2009-10.
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First Published: Mon, Feb 28 2011. 04 00 PM IST
More Topics: Budget news | Budget 2011 | SAIL | ONGC | Divestment |