Panel For Raising Selloff Target To Rs 7,000cr

A group of ministers on disinvestment has recommended that the targeted revenue from the disinvestment of public sector units' equity should be raised to Rs 7,000 crore in 1999-2000.

It has also said that the government should make efforts to achieve the current year's target of Rs 5,000 crore by selling shares in four public sector undertakings _ Indian Oil Corporation, Gas Authority of India, Container Corporation of India and Videsh Sanchar Nigam.

The recommendations of the group of ministers were considered and accepted at the cabinet meeting on August 6.

The ministerial group has suggested that the reserve price of shares should be fixed after closely studying the market conditions for different kinds of shares.

 

Sources said that the panel has cautioned against taking an ambitious view of pricing in any of the PSUs because a failure to sell shares of one PSU can hit the chances of the other PSUs.

The panel has favoured a more realistic approach to pricing rather than testing the patience of international investors, sources said.