No privatisation, just some big selloffs
The government said on Thursday that disinvestment is part of its economic agenda while it ruled out outright privatisation.
By ET Bureau |
NEW DELHI: The government said on Thursday that disinvestment is part of its economic agenda while it ruled out outright privatisation.
���My government will develop a road map for listing and giving people-ownership of public sector undertakings while ensuring that government equity does not fall below 51%,��� President Pratibha Patil said.
The government holdings in listed public sector companies are worth Rs 8.80 lakh crore and if the government dilutes its stakes to 51% in these listed companies, it could lead to an inflow of Rs 3 lakh crore at current market prices.
A dilution of 10% stake in top 10 PSUs can bring in a whopping Rs 85,000 crore. Thus, the government could earn a substantial sum by diluting its stake in just listed PSUs to 51%.
The stake dilution will provide sufficient funds to plug the mounting deficit ��� 6% for the current fiscal year ��� without overshooting the borrowing target. The government has already announced this year���s calendar for borrowing Rs 3.62 lakh crore.
���Our fellow citizens have every right to own part of the shares of public sector companies while the government retains majority shareholding and control,��� the President said. The disinvestment season is expected to begin by September 15 with initial public offerings by Oil India (OIL) and National Hydroelectric Power Corp���s (NHPC).
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