Disinvestment to see surge in FY19
Govt to set 25% higher target for next fiscal; stake sale for FY18 crosses two-thirds of target
NEW DELHI: The government is becoming more ambitious with its disinvestment plans and is planning to increase its revenue target from the stake sale in central public centre enterprises (CPSE) by 25 per cent for 2018-19.“If you see the current market, it is very favourable for disinvestment and we can expect fair valuations. So, expecting better return, the government will be more aggressive with its disinvestment plan,” a senior finance ministry official told Express.
Total disinvestment proceeds during 2016-17 were Rs 46,246.58 crore. The government had set the target to raise Rs 72,500 crore from stake sales in PSUs in FY18.“This fiscal, the government has seen good progress in disinvestment. Till date, total disinvestment proceeds have crossed two-thirds of the disinvestment targets. There is still three months to go and we expect to raise more from the markets in the coming three months,” the official added.
As on December 22, total disinvestment proceeds during the current financial year were estimated at Rs 52,643.34 crore. And, the official reiterates that the target set is not very ambitious.“We already have discussions with the economists in PMEAC and NITI Aayog and both have agreed that this target is not very ambitious. In fact, this is the way forward to meet fiscal deficit targets. The Budget document will have more clarity on this. We are preparing a fresh list for the same,” the official added.
The list includes Air India, IRCTC and EESL.
“The top item in the list is strategic disinvestment in Air India, Central Electronics Ltd, Dock Shipyard Ltd and stake sale in IRCTC and IRCON. Units like EESL are also in the list. If required, the government will hire an asset valuer who can do proper valuation and can professionally help the government make most of the deal. We will start it with DSL,” the official added.
G52k cr and counting
Total disinvestment proceeds during the current financial year are H52,643.34 crore as on December 22, 2017. The CPSE with the highest market capitalisation is ONGC at H2,31,704.06 crore (BSE) and H2,31,832.39 crore (NSE) as on November 30, 2017. CPSEs constitute 10.7 per cent and 10.83 per cent of the total market cap of companies listed at the BSE and NSE, respectively, as on November 30, 2017