[1]Keeping in view the challenges faced by finance minister P. Chidambaram in curbing the burgeoning fiscal deficit and bringing the economy back on track, the government is preparing to hit the disinvestment route in a big way to mop up additional resources of around Rs16,000-18,000 crores in one go.
The Cabinet Committee on Economic Affairs, scheduled to meet Thursday, is likely to consider selling stakes ranging between five to 12.5 per cent in five state-owned companies, all of them profit-making enterprises. Sources said the finance ministry’s disinvestment plan was high on the CCEA’s agenda.
The government plans to dilute its holdings in Hindustan Copper Ltd (HCL), Neyveli Lignite Corporation (NLC), National Aluminium Company Ltd (Nalco), Oil India Ltd (OIL) and Minerals and Metals Trading Corporation Ltd (MMTC).
"Given the existing share prices of all five companies, the government is likely to mop up around Rs16,000-18,000 crore in one go," a source said. It had set a target of raising Rs30,000 crore from disinvestment proceeds in the 2012-13 Budget.
In the budget for 2012-13, the government had put a target to mop up Rs30,000 crore from disinvestments proceeds. But, so far, the government has managed to raise only Rs125 crore through the share sale of National Buildings Construction Corporation (NBCC).
Links:
[1] http://archive.asianage.com/pc18jpgcropdisplayjpg-574