In a bid to shore up its disinvestment kitty ahead of the end of the fiscal, the Centre on Friday raised Rs 13,883 crore through strategic sale of its stake in two state-owned power companies, THDCIL and NEEPCO, and Kamarajar Port Ltd to other state-owned entities. This takes the Centre’s total collections from disinvestment at Rs 48,728.06 crore so far in FY20.
The government has revised its disinvestment target down to Rs 65,000 crore from Rs 1.05 lakh crore for the current fiscal. It has sold 74.49 per cent stake in THDC India Ltd (THDCIL) for Rs 7,500 crore and 100 per cent in NEEPCO for Rs 4,000 crore to state-owned power utility NTPC. Further, the Centre sold 66.67 per cent in Kamarajar Port Ltd to Chennai Port Trust for Rs 2,383 crore.
The Cabinet Committee on Economic Affairs had, last November, given in-principle approval for the sale of government’s stake in North Eastern Electric Power Corporation (NEEPCO) and THDCIL, along with transfer of management control to NTPC.
Prior to these sales, the Centre had raised Rs 34,845.06 through disinvestment, of which Rs 4,368.80 crore was raised through follow on offer of Bharat 22-ETF and another Rs 26,500.39 through more tranches of CPSE ETF.
Exchange-traded funds (ETFs) have been the main sources of fundraising for the government. Among the other stake sales this fiscal, the Centre has raised Rs 637.97 crore through initial public offering (IPO) of IRCTC, Rs 475.89 crore through IPO of RVNL and Rs 730.33 crore via offer for sale of RITES shares. For the upcoming fiscal’s budget, the government has announced an ambitious disinvestment agenda, aiming to raise Rs 2.1 lakh crore via stake sales, including plans to list Life Insurance Corporation on stock exchanges and sale of its stake in IDBI Bank. Privatisation of BPCL, Container Corporation of India, Shipping Corporation of India and national carrier Air India will be other key issues next year.
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