The Centre’s disinvestment kitty will touch the ₹1 lakh crore target set for 2017-18 with the initial public offers and share buybacks of public sector units in recent weeks.

The ongoing listing of state-run Mishra Dhatu Nigam (Midhani) and the just-completed initial public offer of Hindustan Aeronautics are expected to rake in close to ₹4,800 crore for the Centre.

While the near-10 per cent stake-sale in Hindustan Aeronautics is expected to have raised about ₹4,100 crore, the 26 per cent disinvestment in Midhani is likely to fetch about ₹438 crore.

Similarly, the IPO by Bharat Dynamics is expected to have fetched over ₹900 crore.

“The government is on track to meet the disinvestment target for the fiscal,” said a senior official, adding that there are no concerns over that unlike in previous years.

By March 16, the Centre had raised ₹93,303.29 crore as disinvestment proceeds. This included ₹34,877.16 crore from minority stake sales, exchange-traded fund and buybacks, ₹17,357.48 crore from listing of insurance PSUs and ₹41,068.65 crore from strategic disinvestment that also included the HPCL and ONGC deal.

₹800 cr via buybacks

According to Finance Ministry data, share buybacks by two PSUs in recent weeks have also brought in close to ₹800 crore.

This includes share buyback by Antrix Corporation that raised ₹238.92 crore, and another share buyback by SJVN that fetched ₹558.68 crore.

“There could be a marginal shortfall of ₹1,000 crore or so but if that happens, it will be easily managed. There will not be any pressure on the fisc,” said the official.

With uncertain tax revenue and a focus on spending, the government in the Union Budget 2018-19 had raised the Revised Estimates for disinvestment proceeds for 2017-18 to the highest ever ₹1 lakh crore from the earlier target of ₹72,500 crore.

 

Related Topics