Govt to cross Rs 40,000-cr divestment target in 2013-14

The government hopes to rake in much more than its disinvestment target of Rs 40,000 crore in 2013-14. Anupama Airy and Mahua Venkatesh report.

The government hopes to rake in much more than its disinvestment target of Rs 40,000 crore in 2013-14.

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Of the 20-odd companies identified by the Department of Disinvestment (DoD) for a 5-10% equity sale in the next fiscal year, stake sale in just two big-ticket PSUs - Coal India Ltd (CIL) and Indian Oil Corp (IOC) - could alone fetch the government close to Rs 28,000 crore.

Divestment of CIL, India's largest coal company valued at around Rs 215,000 crore, alone is expected to fetch the government over Rs 21,000 crore.

Similarly, a stake sale in the country's largest oil marketing company, IOC, is likely to fetch the government close to Rs 7,000 crore-plus.

"This year's disinvestment strategy is set to begin early and with achievable targets in hands we hope that we may be able to do much more than the Rs 40,000-crore target set for 2013-14," said a senior government official.

Also on the block are leading public sector units (PSUs) including Bharat Heavy Electricals Ltd, Powergrid Corp of India Ltd, Engineers India Ltd, National Hydroelectric Power Corp. Besides disinvetment in smaller ones like Neyveli Lignite Corp and Hindustan Aeronautics Ltd are also scheduled for next fiscal.