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Rediff.com  » Business » Govt to divest in 5 PSUs by March 2011

Govt to divest in 5 PSUs by March 2011

Source: PTI
July 26, 2010 18:30 IST
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The government will divest its stakes in Coal India Ltd, Power Grid Corporation, Hindustan Copper, Steel Authority of India and Manganese Ore India by March 2011, a top official said.

"Yes, all five of them (disinvestment) will happen this fiscal itself," secretary, department of divestment, Sumit Bose, told reporters on the sidelines of a function to announce the Follow-on Public Offering of Engineers India, in Mumbai on Monday.

Earlier this year, the government raised around Rs 1,000-crore (Rs 10 billion) by selling its stake in Satluj Jal Vidyut Nigam.

The most interesting aspect of the divestment will be that of Manganese Ore India where the government of India will divest 10 per cent stake along with five per cent each from two other shareholders -- the state governments of Maharashtra and Madhya Pradesh, Bose said.

He also exuded confidence that the Department will be able to achieve its target of raising Rs 40,000-crore (Rs 400 billion) from the divestment proceeds in the current fiscal.

ICICI Securities' Madhabi Puri Buch, said, "there is a huge appetite for India and moreover, most of the firms have monopolies in their respective sectors...I think we will definitely achieve the target of Rs 40,000-crore."

Bose hinted that Coal India would be the first amongst the five companies to hit the market and added that Power Finance Corporation was not on the list of companies where the government is planning to divest stake as of now.

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