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PSU divestment mops up over Rs 31,000 crore

Deepak Korgaonkar/Mumbai 16 Mar 10 | 05:44 PM
Related to : NTPC Ltd
 NTPC Ltd
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The public sector undertaking (PSU) companies have reported a record fund mobilization through public offers during the financial year 2009-10 (FY10).

As per information available with Bsepsu.com, a website launched by the Bombay Stock Exchange (BSE), the government has raised Rs 31,079 crore in the current fiscal through share sale in Oil India, NHPC, NTPC, Rural Electrification Corp, United Bank of India and NMDC - the highest amount raised in last two decades.

Of this amount, Rs 23,994 crore will flow into government’s kitty. However, this is Rs 1,006 crore less than the target of Rs 25,000 crore, but is 54% higher than Rs 15,547 crore raised through divestment during FY04.

In four financial years between FY05 and FY08, eighteen PSU firms had raised combined Rs 23,808 crore through public issues, while not a single state owned company had raised funds in FY09, due to unstable market conditions. The BSE benchmark index Sensex that declined 38% in FY09, has appreciated by 77% so far in the current fiscal.

Going ahead, the government expects to raise Rs 40,000 crore by selling shares in 12 – 15 PSUs in FY11, signaling a strong return of the politically sensitive disinvestment programme. It will also simplify foreign direct investment (FDI) norms to attract more foreign companies to invest in India.

SJVNL, Engineers India and SAIL disinvestment would be carried out during first quarter, while Coal India would hit the market at the end of FY11.

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