Govt lists cash-rich PSUs for buyback

The Disinvestment Department has prepared a list of cash-rich PSUs which can buy back government equity and help it meet the ambitious Rs 40,000 crore disinvestment target during the current fiscal.

The Disinvestment Department has prepared a list of cash-rich PSUs which can buy back government equity and help it meet the ambitious Rs 40,000 crore disinvestment target during the current fiscal.

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The government has been thinking of raising funds through the buyback route as it has not been able to raise money through sale of equity in public sector units on account of uncertainty in the stock markets.

"The government is open to raise funds through the buyback route as part of the disinvestment exercise. We are thinking of innovative ways to meet the target," said a concerned official.

Under the buyback mode, the government can raise money by selling its equity in the company to the concerned PSU itself.