Govt more than halves FY14 disinvestment target

Target revised downward to Rs 16,027 crore from Rs 40,000 crore

The government today cut its disinvestment target by more than half to Rs 16,027 crore for the current financial year and pegged the proceeds at Rs 36,925 crore for 2014-15.

In the Budget last year, Finance Minister P Chidambaram had estimated to mobilise Rs 40,000 crore by selling minority stakes in state-owned companies.

As per the interim Budget 2014-15 presented in Parliament, the receipts from disinvestment for 2013-14 have been revised downward to Rs 16,027 crore from Rs 40,000 crore.

So far in this fiscal, ending on March 31, the government has raised about Rs 3,500 crore through stake sale in PSUs.

As far as government's residual stake sale in private companies is concerned, the interim Budget has lowered the revised estimates to Rs 3,000 crore against the earlier projection of Rs 14,000 crore.

For the next fiscal, the government aims to garner Rs 15,000 crore from the residual stake sale.

The government hold minority stake in erstwhile PSUs -- Hindustan Zinc Ltd and Balco. Besides, it also holds some stake in three companies, L&T, ITC and Axis Bank through SUUTI.

The Cabinet has already approved stake sale in HZL and Balco through auction route. It has also deferred a proposal of winding up of SUUTI paving way for stake sale in Axis Bank.

SUUTI has already appointed three merchant bankers for stake sale in Axis Bank.

Government holds 29.5% in HZL and 49% in aluminium manufacturer Balco.