The Department of Disinvestment wants that PSU stake sale target for the current fiscal be more than halved to Rs 30,000 crore in view of volatility in the stock markets.

“The target of Rs 30,000 crore seems more reasonable for current fiscal given that there is no big stock to sell,” a source said.

The government has budgeted to raise Rs 69,500 crore through disinvestment in the current fiscal. Of this, Rs 41,000 crore is to come from minority stake sale in PSUs and the remaining Rs 28,500 crore from strategic stake sale.

With seven months of the current fiscal about to be over, the government has been able to sell stake only in four companies —— PFC, REC, Dredging Corp and IOC —— to net Rs 12,600 crore.

For disinvestment in 2015—16, the government has a pipeline of over 20 PSUs for which it has the Cabinet approval. These include 10 per cent stake sale each in OIL, Nalco, NMDC, and 5 per cent each in NTPC, ONGC, BHEL. Besides, plans are afloat for a 10 per cent stake sale in Coal India.

However, volatile market conditions have dented the prospects of a stake sale, with the recent disinvestments of IOC and PFC facing rough weathers.

Domestic markets crashed by over 1,600 points on the day Indian Oil Corporation (IOC) OFS was launched. Similarly, the BSE Sensex fell by over 550 points on the day of PFC share sale.

“Coal India stake sale is not likely in current fiscal.

Besides, valuations of metal and mining stocks are low at present which makes it difficult to proceed with stake sales,” the source added.

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