(FE)
The government is looking to raise close to Rs 9,000 crore by selling 10% equity stake each in the state-run companies Bharat Heavy Electricals Ltd and Oil India Ltd as part of its plan to raise funds from its equity stakes in 16 PSUs to meet its ambitious disinvestment target for the next financial year 2017-18, CNBC TV18 reported on Tuesday citing a wire report, which quoted an unidentified government official.
The government could either sell the shares in the open markets, or might ask the companies to buy back the shares themselves, the news report said. While 10% stake in the capital goods and engineering major BHEL will fetch the government Rs 5,220 crore, the similar stake in oil explorer Oil India will earn it Rs 3,770 crore, according to the news report.
Indian government has undertaken strategic sale of stake in profitable PSUs to help boost up state revenue and bridge the fiscal deficit, but has repeatedly fallen short of its disinvestment targets in the past. It has a target to earn Rs 56,500 crore by divesting its stake in public sector undertakings in the current financial year 2016-17, out of which, it has already earned more than Rs 31,000 crore. It has an even more ambitious disinvestment target of Rs 72,500 crore in the next financial year.
