Budget 2014 proposes a record disinvestment target of Rs 58,425 crore

NEW DELHI: The budget has proposed a record disinvestment target of Rs 58,425 crore, of which Rs 43,425 crore is expected to come from stake sale in public sector units and another Rs 15,000 crore from sale of the government's residual stake in erstwhile state-run companies.

The outgoing UPA government had in its interim budget presented in February targeted Rs 51,925 crore from disinvestment proceeds, of which Rs 36,925 crore was to come from stake sale in PSUs. "We have drawn a road map and will accordingly proceed," said disinvestment secretary Ravi Mathur.

According to finance ministry officials, the government has lined up 10 per cent stake sale in Coal India and NHPC, 5 per cent divestment in Sail, ONGC, PFC and REC. "We should be able to push through at least two big issues in the first half of this fiscal," a finance ministry official said. A 5 per cent stake sale in ONGC alone will get the government about Rs 18,000 crore.

The government has also lined up stake sale in MMTC and the initial public offer ( IPO) of Hindustan Aeronautics Limited (HAL) this fiscal. It has already started the process of appointing valuers for sale of its residual stake in Hindustan Zinc and Balco.

Experts say the government will be able to meet the target, especially since the markets seem to be indicating an appetite for PSUs. "It will sail through effortlessly," said Jagannadham Thunuguntla, strategist and head of research at SMC Global Securities.