Tuesday, March 3, 2020
The Centre is unlikely to meet its 2019-20 revised divestment target of Rs 65,000 crore because of bearish market conditions, according to official sources. With a number of offers for sale (OFS) such as NMDC, SAIL, PFC, Coal India, IRCON and Hindustan Aeronautics planned for March getting deferred, the divestment target could fall short by close to Rs 10,000 crore, government estimates suggest.
The only transactions expected to go through by March 31 are the acquisition of THDC and NEEPCO by NTPC, the planned initial public offering of IRFC, and some buybacks by PSUs, it’s learned.
The finmin is expecting about Rs 15,000 crore from NTPC’s acquisition of THDC and NEEPCO, and about Rs 5,000 crore from the planned IPO of IRFC, besides some buybacks.So far, the Department of Investment and Public Asset Management has mopped up about Rs 35,000 crore. The above transactions will take the disinvestment proceeds to around Rs 55,000 crore, which will be Rs 10,000-crore short of the RE.