The government is looking to raise $1.25 billion (Rs 7,000 crore) ( by selling a stake in state-run miner NMDC in 2012-13, a senior finance ministry official said on Monday, in a move that appeared aimed at boosting investor sentiment.
The government also plans to raise $622 million through the sale of stakes in state-run capital goods-maker Bhel and $520 million in Hindustan Copper in the current fiscal year, the official said.
The government hopes to raise a total of Rs 30,000 crore through stake sales in state-run firms in 2012-13, according to the budget published in March.
Through the proceeds from stake sales, the government is hoping to meet its fiscal deficit target of 5.1% of gross domestic produce for this fiscal year.
The government raised barely Rs15,500 crore through stake sales in the fiscal year 2011-12 due to poor market conditions. That fell far short of the targeted Rs 40,000 crore and meant India's fiscal deficit ballooned to 5.9% from the targeted 4.6%.