Strategic sale in PSUs: Government open to divesting over 51%; aims to collect Rs 28,500 crore

NEW DELHI: The government is open to selling more than 51 per cent in certain public sector entities as part of its 'strategic sale' through which it aims to collect Rs 28,500 crore next fiscal, a top finance ministry official said today.

"Strategic sale means that you are looking for a strategic partner, not selling to retail investor," Finance Secretary Rajiv Mehrishi told reporters here.

Asked if strategic will only mean below 51 per cent, Mehrishi said: "Not necessary".

For the full fiscal 2015-16, the government hopes to garner Rs 69,500 crore through stake sale in PSUs. Of this, Rs 41,000 crore is estimated to come from minority stake sale in PSUs and the remaining Rs 28,500 crore from strategic stake sale.

Mehrishi said the Finance Ministry would "go ahead" with the stake sales depending on need as well as the appetite in stock markets.

As per the Medium Term Fiscal Policy Statement of the government, the budgeted Rs 28,500 crore is expected to come from sale of government holdings in non-government commercial entities - The Specified Undertaking of Unit Trust of India (SUUTI), Bharat Aluminium Company (BALCO) and Hindustan Zinc Limited (HZL).