Efforts being made to reach disinvestment target: Finmin

Efforts being made to reach disinvestment target: Finmin

New Delhi: The government on Tuesday said efforts are being made to achieve the disinvestment target of 40,000 crore for the current fiscal and the proposals of stake dilution in engineering PSU BHEL and aluminium producer NALCO are under consideration.

“The budget estimate for disinvestment proceeds are 40,000 crore for the year 2011-12. All efforts are being made to reach the disinvestment target for the current fiscal year," minister of state for finance S S Palanimanickam said in a written reply to Rajya Sabha.

Palanimanickam said the proposals for 5% government stake dilution in Bharat Heavy Electricals Ltd (BHEL) and 10% in National Aluminium Company Ltd (NALCO) “are in various stages before seeking the government approval."

He said the government has already approved disinvestment in ONGC, Steel Authority of India Ltd (SAIL), Hindustan Copper (HCL) and National Building and Construction Corporation (NBCC).

The government has given approval for sale of its 5% stake in SAIL along with issue of 5% fresh equity. It has also approved disinvestment of 5% of government’s holding in ONGC.

So far in the current fiscal the government has been able to mop up over 1,100 crore by offloading stake in the Power Finance Corporation (PFC).

Last fiscal, the government had raised 22,763 crore from sale of equity in public sector enterprises against a target of 40,000 crore. It offloaded equity in SJVN, Engineers India, Coal India, Power Grid and Shipping Corporation of India.