FM hopes to meet Rs.40,000 cr disinvestment target

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SME Times News Bureau | 19 Nov, 2011
The government has not revised downward the disinvestment target of Rs.40,000 crore for the current fiscal and was hopeful of meeting it, Finance Minister Pranab Mukherjee said Friday.

"I am not revising it right now. We have fixed the target and will try to achieve it," Mukherjee told reporters on the sidelines of a conference here.

Mukherjee said achieving the disinvestment target would depend on several things, especially the market conditions and overall health of the economy.

"All these aspects will be taken into account and the government will take a decision at an appropriate time," he said.

The finance minister in the union budget targetted raising Rs.40,000 crore from disinvestment during 2011-12.

So far the government has managed to raise only Rs.1,162 crore by selling 5 percent stake in the Power Finance Corporation.

However, proposals for disinvestment in five other public sector undertakings -- Oil and Natural Gas Corporation, Bharat Heavy Electricals Limited, Steel Authority of India Limited, Hindustan Copper and National Building and Construction Corporation -- have already been cleared by the federal cabinet.

Earlier, addressing a seminar on disinvestment in Public Sector Undertakings (PSUs), Mukherjee said the government was committed to maintain at least 51 percent majority stake in public sector firms.

"Disinvestment has often suffered from the hangover of the apprehension of passing of management control into private hands. The public sector character of the listed companies will be maintained as at least 51 percent shareholding remains with the government," he said.