Finance Ministry is mulling a strategy to divest stake in seven big state-run companies in seven big state-run companies, which include Coal India, Sail, MMTC, NMDC, NHPC, N Lignite and Nalco. The Government holds around 80 percent or more stakes in these companies.
The government would retain the disinvestment target through stake sale in PSUs at Rs 36,000 crore in FY15. It is likely to kick start the programme with bigger stake sale issues such as Coal India and Sail.
The move came after the Securities & Exchange Board of India (Sebi) proposed to bring public float in state-run firms at 75%, equal to that of private companies. However, earlier, Assocham had stated that the new government should divest stake in the top 10 cash-rich PSUs to raise around Rs 1 lakh crore, which can be used to provide much-needed push to economic growth and tide over revenue shortfall. Assocham added that the new government should take advantage of robust state of domestic stock markets helped by heavy inflow of funds from the foreign institutional investors (FIIs).
In the previous fiscal year, the government was able to disinvest only around Rs 16,000 crore as against the set target of Rs 40,000 crore mainly on account of subdued economic conditions.