Rs40,000 cr PSUs disinvestment target achievable: Praful

Rs40,000 cr PSUs disinvestment target achievable: Praful

New Delhi: Heavy Industries and Public Enterprises minister Praful Patel on Tuesday said the target of 40,000 crore proceeds through disinvestment of public sector units (PSUs) in the next fiscal “is achievable".

“The finance minister has announced 40,000 crore to be realised through disinvestment and I think in the current context, it is achievable," he said at a FICCI AGM in the national capital.

Patel said public sector units, which account for over one third of the market capitalisation, hold huge potentials for the capital markets.

“These ratnas (PSUs) - Miniratnas and Navratnas, have immense potential," Patel said.

In the Budget, the government has proposed an ambitious disinvestment target of 95,000 crore from sale of shares in public sector companies over next three fiscals, including 40,000 crore in 2011-12.

This is despite the Manmohan Singh government not being able to meet its target of 40,000 crore in the current fiscal, when total disinvestment proceeds are estimated at 22,144 crore.

The government, however, is committed to retain at least 51% ownership and management control of the Central Public Sector Undertakings (CPSUs).

In 2011-12, the government is likely to dilute its stake in IOC, Power Finance Corporation, Hindustan Copper, Rashtriya Ispat Nigam Limited, among others.

On sick enterprises, the minister said those companies which are “eternally sick" or not able to turned around, “I am sure the government will take a call in the near future".