The government could either sell...
the shares in the open markets, or might ask the companies to buy back the shares themselves, the news report said. While 10 percent stake in the capital goods and engineering major BHEL will fetch the government Rs 5,220 crore, the similar stake in Oil India will earn it Rs 3,770 crore.
NDA Government has undertaken strategic sale of stake in profitable PSUs to help boost up state revenue and bridge the fiscal deficit, but has repeatedly fallen short of its disinvestment targets in the past. It has a target to earn Rs 56,500 crore by divesting its stake in public sector undertakings in the current financial year 2016-17, out of which, it has already earned more than Rs 31,000 crore. It has an even more ambitious disinvestment target of Rs 72,500 crore in the next financial year.
Also, the NDA Government is mulling to ask Engineers India Ltd and NBCC to buy back shares, by which it expects to earn Rs 390 crore and Rs 280 crore, respectively.
For the next year, among marquee disinvestment projects, the government plans to launch its second CPSE ETF – the exchange-traded fund of public sector enterprises; and seeks to sell 10 percent stake each in three state-run railway companies IRCTC, Ircon and IRFC via an IPO (initial public offer) in the next financial year 2017-18.
The Ministry of Railways has listed nine more units for likely IPO, said a media report..
Earlier, the Union Cabinet also approved listing of five state-run general insurance companies, which is likely to begin only in the next financial year with the first listing possible by September-October.