Govt aims Rs 30K cr from disinvestment | india | Hindustan Times
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Govt aims Rs 30K cr from disinvestment

india Updated: Mar 17, 2012 01:00 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The government has set a target of Rs 30,000 crore that it expects to earn by selling equity in state-owned companies in 2012-13. The stage appears set for the government to press the accelerator on the disinvestment programme including big-ticket stake sales in companies such as NTPC, Coal India and NMDC.

The higher target is despite the fact that it missed the target for the current fiscal year by a wide margin.

"In 2011-12, as against a target of Rs 40,000 crore, the government will raise about Rs 14,000 crore from disinvestment," said," finance minister Pranab Mukherjee said in his Budget speech.

"For 2012-13, I propose to raise Rs 30,000 crore through disinvestment."

In January, the SEBI board had allowed auctioning of securities through stock exchanges and introduced a new method for institutional placement of stocks.

As per the auctioning route, a special window can be used by promoter stakeholders to sell at least 1% of the paid-up capital of a company.

Earlier this month, the government sold 5% of its equity through the auction route to earn nearly Rs 13,000 crore.

Under the IPP, shares can be sold only to qualified institutional buyers. The two new windows for stake sale by promoters are based on the same concept except that one is a wholesale route and other retail.

Instead of working out an elaborate exercise of follow-on public offers, promoters or the government in the case of public sector undertakings (PSUs) will be able to auction off their stake in a quick and simple manner.