New Delhi: President Pratibha Patil on Thursday made it official, with the Left out of the way disinvestment is back on the UPA's radar.
"Floating government shares in the market could be a very good source of funding for the government besides that it will also have a very positive impact on the stock markets," said Harsh Pati SInghania., President, FICCI.
The markets are rejoicing already, the Sensex on Thursday closed above the 15,000 mark for the first time since September last year reversing the earlier losses. With likely disinvestment, firms are gaining substantially.
The government says it won't reduce its stake in PSUs below 51 per cent, disinvestment may help government raise Rs 25,000 crore this fiscal alone and the front runners being Oil India, NHPC, RITES.
Divestment candidates
Besides some new listings, if the government brings down its stake to 51 per cent in each of 27 listed PSUs, it can raise a as much as $90 billion or over Rs 4 lakh crore.
PSU firepower
- By reducing stake to 51%
- Rs 4 lakh crore
UPA's economic agenda goes beyond disinvestment, it plans to further open up sectors like aviation and insurance, strengthen public sector banks and also bring in a pension regulator.
And this time it is easier for the UPA to push some big bang reforms given a more decisive victory and like-minded partners.