Rs 40K cr PSUs disinvestment target achievable: Patel

Heavy Industries and Public Enterprises Minister Praful Patel today said the target of Rs 40,000 crore proceeds through disinvestment of public sector units (PSUs) in the next fiscal "is achievable".

"The finance minister has announced Rs 40,000 crore to be realised through disinvestment and I think in the current context, it is achievable," he said at a Ficci AGM here.

Patel said public sector units, which account for over one third of the market capitalisation, hold huge potentials for the capital markets.

"These ratnas (PSUs) - Miniratnas and Navratnas, have immense potential," Patel said.

In the Budget, the government has proposed an ambitious disinvestment target of Rs 95,000 crore from sale of shares in public sector companies over next three fiscals, including Rs 40,000 crore in 2011-12.

This is despite the government not being able to meet its target of Rs 40,000 crore in the current fiscal, when total disinvestment proceeds are estimated at Rs 22,144 crore.

The government, however, is committed to retain at least 51% ownership and management control of the CPSUs.

In 2011-12, the government is likely to dilute its stake in IOC, Power Finance Corporation, Hindustan Copper, Rashtriya Ispat Nigam, among others.

On sick enterprises, the minister said those companies which are "eternally sick" or not able to turned around, "I am sure the government will take a call in the near future".