No rail cos in divestment party, govt eyes Rs 40K cr from 12 PSUs

NEW DELHI: Railway minister Mamata Banerjee has refused to include any of the public sector companies under her ministry in the government’s divestment plan, a development that could force the government to meet its sell-off target for the next fiscal from fewer companies.

The government is now looking to raise the targetted Rs 40,000 crore from stake sales in 12 of the 15 PSUs on its initial divestment plan. The government’s fiscal calculations could go awry, if it is not able to meet the sell-off targets. For 2010-11 , the government has budgeted a fiscal deficit of 5.5% of GDP.

The disinvestment department, which is likely to announce a sell-off road map soon, is in the process of drawing up a list of PSUs that are likely to hit the market next year. The companies likely to see stake sale next year include Coal India, Manganese Ore Corporation of India, Power Grid Corporation , Shipping Corporation of India and HMT International.

The department is also in talks with relevant administrative ministries to divest stakes in Hindustan Copper, National Fertilisers and Rashtriya Chemicals and Fertilisers. Satluj Jal Vidyut Nigam (SJVNL) and Engineers India (EIL) have already been approved for divestment, and could hit the market early next fiscal.

“While we are considering stake sale in these companies this year, the list could see some changes later on,” a senior government official said, adding that a final list is likely to be ready by the month-end . The railway ministry has also ruled out any divestment in rail PSUs, a government official said, requesting anonymity.

Significantly, railway consultancy arm RITES was keen to hit the market and had even got government sanction in 2008 for an initial public offering.