New Delhi, Feb. 28: The government plans to go ahead with the divestment of state -owned Oil and Natural Gas Corporation (ONGC) this fiscal to come close to the Rs 40,000-crore selloff target, even as it plans to raise Rs 95,000 crore from the sale of shares in public sector companies over the next three fiscals.
“The stake sale of ONGC will take place this fiscal, but SAIL will be in early next fiscal,” divestment secretary Sumit Bose said.
He said, “It takes about nine working days for the government to get the sale proceeds and if the issue is in the middle of next month, the receipts are likely to be in the kitty before the end of the fiscal.”
ONGC is expected to generate around Rs 12,000-15,000 crore from the stake sale.
Analysts said the issue was expected to perform well as the spike in global crude oil prices helped the exploration firm and its books, although it might have to share the subsidy burden of the oil marketing firms selling fuel below cost.
The government is selling 5 per cent of its shares in ONGC. Post offer, the government shareholding in the company will come down to 69.14 per cent from 74.14 per cent.
The government has raised Rs 22,144 crore this fiscal by selling its stakes in different state-run companies, including Coal India, Power Grid Corporation of India, Satluj Jal Vidyut Nigam, Engineers India Ltd, Shipping Corporation of India and Manganese Ore India Ltd.
“As against a target of Rs 40,000 crore, the government will raise about Rs 22,144 crore from divestment in 2010-11. A higher-than-anticipated realisation in non-tax revenues has led us to reschedule some of the divestment issues planned for the current year,” the finance minister said.
He said the government was committed to retaining at least 51 per cent ownership and management control of the central public sector undertakings.
“I intend to maintain the momentum on divestment in 2011-12 by raising Rs 40,000 crore,” he said.
Divestment receipts have been projected at Rs 30,000 crore and Rs 25,000 crore in 2012-13 and 2013-14, respectively.
