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A revenue windfall from 3G spectrum and broadband auctions in 2010-11 has prompted the Centre to settle for lower divestment mop up in current fiscal, besides rescheduling some of the already planned divestment issues to the next fiscal.
As against a disinvestment target of Rs 40,000 crore set for 2010-11, the Government has decided to settle for the Rs 22,144-crore collected so far as the disinvestment receipts for the current fiscal, the Finance Minister Mr Pranab Mukherjee said in his budget speech here on Monday.
Mr Mukherjee has for the revised estimate purposes not taken into account the disinvestment receipts that would come the Centre's way from planned further public offering (FPO) in ONGC this fiscal. There were indications that both ONGC and SAIL (Ist Tranche) issues would go through in March.
By taking disinvestment receipts for 2010-11 at Rs 22,144 crore, Mr Mukherjee has indicated that both the ONGC and SAIL transactions may not happen in March and likely to be rescheduled to next fiscal. Even if the ONGC transaction were to happen in late March, the actual divestment receipts will be accounted for in the next fiscal. The Government is looking to bring SAIL issue to the market only after the ONGC transaction.
Even as certain planned divestment issues are being rescheduled, Mr Mukherjee said in his Budget speech today that he intends to maintain the momentum on disinvestment in 2011-12 by raising Rs 40,000 crore. The Finance Minister also said that the Government is committed to retain at least 51 per cent ownership and management control of the CPSUs, as stated earlier in his Budget speech for 2009-10.
Later, Mr Sumit Bose, Secretary in Disinvestment Department, told a post-Budget press conference that the disinvestment target of Rs 40,000 crore for 2011-12 was “very realistic”. He indicated that the ONGC transaction could happen in third week of March and the SAIL issue was likely to hit the market in last week of March or in early April. The divestment receipts from both these issues will be taken credit in next fiscal's accounts as capital receipts.
“We had set a year-end target for the ONGC FPO. The issue could still come in March. It takes nine days for the proceeds to come after the issue closes. So the issue proceeds could come in April,” Mr Bose noted
The Centre has so far in 2010-11 mopped up Rs 22,144 crore from sale of Government equity in six public companies — Satluj Jal Vidyut Nigam, Engineers India, Coal India, PowerGrid, Manganese Ore India and Shipping Corporation.
In 2011-12, the Centre is looking to dilute its stake in Indian Oil, Power Finance Corporation, SAIL, Hindustan Copper and Rashtriya Ispat Nigam Ltd.
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