However, the government seems to have spotted a flicker of light. Officials have been 'thinking aloud' about alternative options like buybacks, strategic sales and qualified institutional placements to bridge the gap.
But the government's Plan 'A' -- disinvestment through public offers or people's ownership of public sector units -- is still on track.
In fact, the process has gained steam in the last few days.
On October 19, the Department of Disinvestment issued advertisements inviting bids from merchant bankers to manage Hindustan Aeronautics Ltd's initial public offering.
The following day, it went through presentations for appointing legal advisors for Rashtriya Ispat Nigam Ltd's IPO.
On October 22, the department put up the official notification of the final approval by the Cabinet Committee on Economic Affairs to the five per cent follow-on offer of Bharat Heavy Electricals Ltd and the Cabinet nod to National Building Construction Corp's IPO.
While media reports, quoting unnamed sources, had talked about these as early as August, these take effect only after issuance of notifications.
The CCEA note on disinvestment goes through the ministries concerned , the Prime Minister's Office and the Cabinet Secretariat before getting notified.
The notifications are critical as they need to accompany the regulatory filings.
"The book running lead managers and legal advisors can commence the process of preparing the Draft Red Herring Prospectus immediately after appointment.
However, CCEA's approval for disinvestment through public offers has to be taken either before the DRHP is filed with the Securities and Exchange Board of India by the Central Public Sector Enterprises or, in fast track issues, the Red Herring Prospectus is filed with Sebi and the Registrar of Companies," says a finance ministry handbook on divestment
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