With two months to end FY20, fiscal disinvestment proceeds have touched Rs 18,094.59 crore till January 9, a meagre 17.23% of the target and if this state of affairs remains till March 31, then government would miss the target by a whopping Rs 87,000 crore. The target for fiscal 20 is Rs 1.05 lakh crore.
The updated figures from Department of Investment and Public Asset Management (DIPAM) shows the sell-off proceeds have touched Rs 18,094.39 crore with the latest addition of RITES offer for sale, whereby the government shed 10% stake and fetched Rs 730.33 crore.
The other disinvestments in FY20 so far have been -- Bharat 22 ETF FFO 2 (Further Funds Offer) at Rs 4,368.80 crore and IRCTC listing fetching Rs 637.97 crore. The CPSE ETF FFO-5 has mopped up Rs 10,000 crore and Rail Vikash Nigam Ltd's IPO received Rs 475.89 crore.
At the beginning of the year, 'enemy shares' sale had garnered Rs 1,881.21 crore.
DIPAM will be issuing Expression of Interest for Air India in the current fiscal, which technically rules out any possibility of the ailing PSU carrier's privatisation this fiscal and the same goes for BPCL strategic sale.
In November, the Cabinet gave in-principle approval for disinvesting stake in 5 blue-chip PSUs, including strategic divestment of the government's 53.29 per cent stake in state-owned Bharat Petroleum Corporation Ltd (BPCL) and transfer of management control. This excludes BPCL's equity share holding of 61 per cent stake in Numaligarh Refinery.
Apart from BPCL, the government has also approved disinvestment in four other central public sector enterprises (CPSEs) viz. Shipping Corp of India (SCI), Container Corp of India, THDC India and North Eastern Electric Power Corporation Ltd (NEEPCO). The state-run NTPC is likely to buy central government's stake in NEEPCO and THDC, but no move has been made by NTPC thus far.
The government will try to push through sale of minority stakes, including through exchange-traded funds, to raise revenue.