FM sticks to Rs 40,000-cr target from disinvestment | business | Hindustan Times
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FM sticks to Rs 40,000-cr target from disinvestment

business Updated: Nov 19, 2011 02:30 IST
HT Correspondent

The government on Friday maintained that it will be able to garner the budgeted Rs 40,000 as revenue by selling stakes in public sector companies despite uncertain market conditions.

"I am not revising it (the disinvestment revenue target) right now," said finance minister Pranab Mukherjee on the sidelines of a seminar on disinvestment of public sector undertakings (PSUs). "We have fixed the target and we will try to achieve it, but it depends on many other situations, particularly the economic health conditions."

Last year, the government earned Rs 22,763 crore from the sale of equity in PSUs, against the targetted Rs 40,000 crore.

The government was banking heavily on disinvestment proceeds and additional revenue of telecommunication licence and spectrum fee to bolster its balance sheet with nearly 40% of its non-tax revenues expected to come in from these two sources.

The government has already approved disinvestment in companies such as ONGC, SAIL, Hindustan Copper and National Building and Construction Corporation (NBCC).

The petroleum ministry has also approved sale of a 10% stake in Oil India Ltd, a source at the ministry said.

The source also said the share sale of OIL will take place after the ONGC's public offer.