Govt to sell 5% stake in PFC next week

Identifies Dredging Corporation for disinvestment

After identifying four companies for disinvestment on Thursday, the government has decided to sell five per cent stake in Power Finance Corporation (PFC) next week. Also on the cards is offloading a five per cent stake in Dredging Corporation (DCIL).

The PFC sale could fetch the government Rs 1,850 crore, and the disinvestment in DCIL about Rs 56 crore.

The department of disinvestment said it was looking for merchant bankers to sell the stake in DCIL.

The move follows similar action for four blue-chip firms — Indian Oil Corporation (IOC), Bharat Heavy Electricals (BHEL), National Aluminum Company (Nalco) and NMDC.

While a 10 per cent stake each in IOC, Nalco and NMDC is to be divested, BHEL might see a sale of five per cent. Disinvestments in these four firms could make the kitty richer by Rs 18,000 crore.

So far in the current financial year, the government has raised Rs 1,700 crore through a five per cent stake sale in Steel Authority of India, against the targeted Rs 43,425 crore.

The government is racing against time to meet its disinvestment target for FY15. Blue-chip companies such as Oil and Natural Gas Corporation (ONGC), NHPC and Coal India (CIL) have been lined up for disinvestment.

However, uncertainty looms large over the five per cent stake sale in ONGC and 10 per cent in CIL. If it does not happen, it means Rs 35,000-crore less money for the exchequer.

The government is also eyeing Rs 15,000 crore from the sale of residual stakes in private companies in the current financial year.