Anticipating a greater stability in stock markets and fast recovery of the country’s economy, Finance Minister Arun Jaitley on Thursday said that the Government’s disinvestment plan would continue as scheduled.
“I don’t read too much on daily movements as far as markets are concerned. By and large with the health of economy recovering, I see much greater stability as far as markets are concerned. And therefore, the disinvestment programme of the Government will continue as it has been planned,” Jaitley told reporters here.
The Government has set a target of Rs69,500 crore from PSU disinvestment for the current fiscal. Of this, Rs41,000 crore is to come from minority share sale in PSUs and Rs28,500 crore from strategic stake sale.
There are also apprehensions that the impending US Fed rate hike could lead to flight of foreign funds away from Indian capital markets, thus impacting the disinvestment plan.
Although the disinvestment department has got approval from Cabinet for selling minority stakes worth about Rs50,000 crore in a host of PSUs, it has only been able to divest stake in one company -- REC -- so far this fiscal.
The Cabinet has approved sale of 5 per cent stakes in ONGC, BHEl and NTPC as well as 10 per cent each in IOC, NAlCO and NMDC. As per the Public Enterprise Survey 2013-14, India has 234 Central Public Sector Enterprises (CPSE) of which 46 companies are listed.