This Article is From Feb 12, 2013

Government likely to scale up divestment target to Rs 35,000 crore for FY14

New Delhi:

The Finance Ministry is likely to revise upwards its divestment target for the new financial year (FY14) to Rs 35,000 crore compared to Rs 30,000 crore for the current fiscal year.

The government is expected to miss the current year's target by about Rs 3,000 crore, despite seeing an oversubscription of issues in NTPC selloff.  

Government officials told NDTV Profit that a number of issues are in the pipeline to meet the higher target, including a stake sale via the OFS mechanism for Coal India. The other big issue likely is that of IndianOil.

The two issues - Coal India and IndianOil - are likely to fetch around Rs 26,000 crore for the government.

Besides, the government is likely to shed stake in some more companies like Andrew Yule, where it owns slightly over 97 per cent stake. Apart from making money for the government, the 10 per cent stake sale in Andrew Yule would make the company more compliant with the public shareholding norms mandated by stock market watchdog Securities and Exchange Board of India (SEBI).  Public sector units (PSUs) have been given time till August 2013 to adhere to Sebi norms.

Other issues which have received the Cabinet's nod for a stake sake are Engineers India, Hindustan Aeronautics Limited, Niyveli Lignite, Bharat Heavy Electricals Ltd and Rashtriya Ispat Nigam Ltd.

It is likely the government will mark the new financial year with a follow-on public offer (FPO) of Engineers India.

Power Grid Corporation is also on the divestment radar for the next fiscal year.