NEW DELHI: Staring at an estimated shortfall of Rs 15,000 crore in disinvestment revenue this fiscal, and also enthused by the investor response to ETF offerings, the government is planning to have a third tranche of Bharat ETF 22 offering in January. This, along with dilution of its stake in five public sector undertakings, is expected to add to the disinvestment kitty.
“The pace of divestment is slower than anticipated, but we are confident of meeting the divestment target. Next quarter is going to be busy for us. If required we will take professional help and will meet the rest of the target via ETF, stake sale in PSUs and via buy-back offers,” a senior official at the Department of Investment and Public Asset Management (DIPAM) told TNIE.
The budget has set a target of realising Rs 80,000 crore from disinvestment this year. But, one of main item billed for the year, Air India, has failed to take off. The government is looking at sale of its stake in Pawan Hans, and also some of the units of Air India, such as the ground handling services. Yet, analysts have rung the alarm bell that the delay in divestment of PFC and SJVN may lead to a shortfall of Rs 15,000 crore. So far this year, about Rs 32,998 crore has been raised, including the two tranches of Bharat 22 ETF, which garnered about Rs 22,900 crore. With a combination of public sector and a few large-cap private sector companies, the popular Bharat ETF is set for a third offering in January.
“We have got good response from Bharat 22 ETF. The third tranche of it will be launched in February and we hope to raise Rs 10,000-12,000 crore from it. Another Rs 10,000 crore is expected from share buy-back from PSUs,” the official added.Last month, the third fund offer of CPSE ETF saw tremendous response, raising Rs 17,000 crore. “This is an instrument (ETF) we will continue to use,” said Atanu Chakraborty, Secretary, DIPAM, while speaking to reporters in Mumbai recently.
The department has also called for bids from fund managers for a Debt ETF, though it is still not clear if it would be used for disinvestment purposes. Sale of the government’s 52.63 per cent in Rural Electrification Corporation to Power Finance Corporation would fetch another Rs 15,000 crore. The deal is likely to be completed by February this year.