Prime Minister calls high-level meeting to push divestment

NEW DELHI: Committed to keep the fiscal deficit under check, Prime Minister Manmohan Singh has convened a high-level meeting on Tuesday to push forward the disinvestment programme with a view to achieve the budgetary target of Rs 40,000 crore in the current fiscal. The meeting, according to sources, will be attended by finance minister P Chidambaram, and other concerned ministers.

“PM wants to review the progress with regard to disinvestment programme. Issues concerning Coal India, Bhel, Hindustan Zinc and Balco are likely to be discussed,” according to a source. The government has budgeted to raise Rs 40,000 crore from minority stake sale in PSUs in the current fiscal. With eight months of the fiscal over, it has managed to garner only over Rs 1,325 crore through stake sale in six PSUs.

The stake sale of Coal India (CIL) has been hanging fire for long on account of opposition from the trade unions. Besides, BHEL disinvestment is also facing roadblocks of unfavourable market conditions as the company’s share price has taken a beating since its disinvestment was approved in 2011. At the current market price of Rs 274.30 apiece, CIL stake sale could fetch overRs 8,600 crore. Besides, by selling 5% stake or 8.28 crore BHEL shares at the current market price of Rs 158.40, the exchequer could reap in over Rs 1,300 crore.