Finmin confident to meet Rs 40,000-cr divestment

Despite only Rs 2,000 crore (Rs 20 billion) mopped in the first half through disinvestment, the finance ministry said on Tuesday it is 'confident' of meeting the Rs 40,000-crore (Rs 400-billion) target for the current fiscal, as there is enough appetite in the market.

"We are confident of meeting the Rs 40,000 crore target. . .there is enough appetite in the market," Divestment Secretary Sumit Bose told reporters in New Delhi.

He further said that disinvestment in many big ticket companies, including Indian Oil Corporation, Oil and Natural Gas Corporation, Steel Authority of India Limited, Coal India and Power Grid are expected in the current fiscal.

"We expect IOC, ONGC disinvestment in the current fiscal," Bose added.

Aiming to raise Rs 40,000 crore through divestment this fiscal, the government has mopped up over Rs 1,000 crore (Rs 10 billion) by divesting stake in Satluj Jal Vidyut Nigam, and around Rs 1,000 crore through Engineers India follow-on public issue.

Besides, the government plans to sell 5 per cent stake in Oil and Natural Gas Corporation and 10 per cent in Indian Oil Corporation to raise about Rs 21,000 crore (Rs 210 billion) this fiscal, Oil Secretary S Sundareshan had said.

The government is diluting its 10 per cent stake in Coal India Ltd through a public offer to raise Rs 16,000 crore (Rs 160 billion).

At present, the government owns a 100 per cent stake in the company.