Divestment target of Rs 40,000 crore modest: FinMin

The Finance Ministry on Thursday said it does not anticipate any backlash from PSU employees against divestment in state-run companies and the target of Rs 40,000 crore  (Rs 400 billion) under this head next fiscal is 'modest' and achievable.

"This year, if we can put in Rs 25,000 crore, next year Rs 40,000 crore is modest," revenue secretary Sunil Mitra said at a Confederation of Indian Industry seminar.

Mitra added that he does not anticipate any problem on disinvestment front. "There need not be any serious backlash whether from employees or other stakeholders in divestment process. Because it is very marginal listing kind of process. I don't anticipate any problem on this," he added.

Before taking charge as revenue secretary, Mitra was holding the portfolio of divestment secretary.

In the current fiscal, proposed NMDC issue will help the government mop up Rs 25,000 crore (Rs 250 billion) from divestment.

However, the government has upped the revenue target from sale of government equity in PSUs to Rs 40,000 crore in 2010-11, according to Budget estimates.

This fiscal, divestment has been made in Oil India Ltd, NHPC, NTPC, while the issue of Rural Electrification Corporation closed recently for subscription.

NMDC is also lined up for this fiscal, while Satluj Jal Vidyut Nigam, earlier scheduled for the current fiscal will now hit markets during 2010-11.