Govt to divest stake in 6-7 firms in next 12 months: finance secy

Govt to divest stake in 6-7 firms in next 12 months: finance secy

New Delhi: The government will offload equity in six to seven state-owned companies in the next 12 months, finance secretary Ashok Chawla said on Tuesday.

“Two companies are going to the market. (Disinvestment plans of) others are getting finalized. So, there would be six to seven more companies which will come up (for stake sale)," he told reporters on the sidelines of a Corporation Bank function.

The divestment of identified public sector undertakings would be done in the next 10 to 12 months, he added.

While NHPC has already completed its initial public offering (IPO), Oil India Limited (OIL) is slated to hit the market in September.

The NHPC issue, which would help raise about Rs6,000 crore, was subscribed over 23 times the shares on offer.

Among the PSUs which are firming up plans to hit the capital markets include mineral major NMDC and Coal India Limited.

Union finance minister Pranab Mukherjee in his budget speech had said that government would retain 51% stake in the PSUs, while the rest can be owned by public.

“While retaining at least 51% government equity in out enterprises, I propose to encourage people’s participation in our disinvestment programme", he had said.