Government Clears NTPC, NHPC Stakes Sale to Mop Up Rs 8K cr
Published: 07th August 2015 04:56 AM | Last Updated: 07th August 2015 04:56 AM | A+A A-
NEW DELHI: The government on Thursday approved proposals for divesting 11.36 per cent stake in NTPC and 5 per cent stake in NHPC Limited, a move that could fetch Rs8,247 crore to the government.
The government has so far been able to mop up only Rs3,200 crore from stake sale of Power Finance Corporation and Rural Electrification Corporation. For the current fiscal, it plans to raise Rs69,500 crore, including Rs41,000 crore via disinvestment of Central Public Sector Enterprises (CPSE) and Rs28,500 crore from strategic sale of PSUs.
Despite the government missing its disinvestment target in the last five years in a row, Finance Minister Arun Jaitley set an ambitious target to raise Rs69,500 while presenting the Union Budget 2015-16. Admitting that such ambitious targets are not achievable given the volatile market conditions, Disinvestment Ministry officials told the Finance Ministry that it may only be able to raise Rs30,000 crore this fiscal.
If the government achieves Rs30,000 crore this year, it would still be the highest-ever disinvestment kitty in a year for the government.
Terming Rs30,000 crore as a more “realistic” target, the department has said that a higher target was becoming “counter-productive” in framing of a strategy for sale of shares due to market volatility.
Over a dozen PSSs, including Indian Oil Corporation, BPCL, Dredging Corporation of India, NBCC, Hindustan 
Aeronautics and Rashtriya Ispat Nigam Ltd are all being short-listed either for the Initial Public Offer (IPO) or strategic stake sale.
Even as these PSUs would fetch high returns, they would not be able to match the proceeds DoD had garnered via share sale of Coal India last fiscal.
The government had sold 10 per cent in CIL in January and raised Rs22,600 crore.NEW DELHI: The government on Thursday approved proposals for divesting 11.36 per cent stake in NTPC and 5 per cent stake in NHPC Limited, a move that could fetch Rs8,247 crore to the government.
The government has so far been able to mop up only Rs3,200 crore from stake sale of Power Finance Corporation and Rural Electrification Corporation. For the current fiscal, it plans to raise Rs69,500 crore, including Rs41,000 crore via disinvestment of Central Public Sector Enterprises (CPSE) and Rs28,500 crore from strategic sale of PSUs.
Despite the government missing its disinvestment target in the last five years in a row, Finance Minister Arun Jaitley set an ambitious target to raise Rs69,500 while presenting the Union Budget 2015-16. Admitting that such ambitious targets are not achievable given the volatile market conditions, Disinvestment Ministry officials told the Finance Ministry that it may only be able to raise Rs30,000 crore this fiscal.
If the government achieves Rs30,000 crore this year, it would still be the highest-ever disinvestment kitty in a year for the government.
Terming Rs30,000 crore as a more “realistic” target, the department has said that a higher target was becoming “counter-productive” in framing of a strategy for sale of shares due to market volatility.
Over a dozen PSSs, including Indian Oil Corporation, BPCL, Dredging Corporation of India, NBCC, Hindustan Aeronautics and Rashtriya Ispat Nigam Ltd are all being short-listed either for the Initial Public Offer (IPO) or strategic stake sale.
Even as these PSUs would fetch high returns, they would not be able to match the proceeds DoD had garnered via share sale of Coal India last fiscal.
The government had sold 10 per cent in CIL in January and raised Rs22,600 crore.
