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Market mood may stagger disinvestment

business Updated: Feb 07, 2010 22:27 IST

PTI
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On the heels of the benchmark Sensex tumbling to a three-month low on Friday, a senior Finance Ministry official has said that a roadmap for the government’s stake sale in central public sector undertakings (CPSUs) will initially include only select companies, as it is not possible to have a disinvestment programme at one go.

“It (disinvestment) has to be a gradual process. It would be in a phased manner,” a ministry official told PTI.

The Sensex suffered its biggest intra-day loss in 64 trading days on Friday after the index ended the day at 15,790 points, plunging 434 points, or 2.7 per cent. The index was buffeted by concerns over sovereign debt problems in Europe and a worrying job situation in the US.

The divestment department is reviewing the programme to sell government stake in public sector units (PSUs) and the first roadmap is expected next month, the official said.

The disinvestment department had identified over 60 CPSUs last month for stake sale.

The government has already divested its stakes in National Hydroelectric Power Corp and Oil India Ltd, which mopped up Rs 8,600 crore. The government is expected to reduce its stake in three others — Rural Electrification Corp, National Mining Development Corp and Satluj Jal Vidyut Nigam Limited — this fiscal year.