Business Standard
Govt readies for BALCO disinvestment
Edited by : AL CIRCLE
1 min read
With anaemic markets putting paid to big-bang market-led disinvestment plan for the year, the government is reworking its strategy to reach closer to its Budget target of Rs 40,000 crore from the sale of its share in public sector units. A couple of options are on the table, from buyback, cross-holding, selective public offers of only big companies to residual stake in companies with minority government ownership.
The finance ministry is exploring the possibility of selling stake in companies where it is left with a minority share and selling further equity would not make much difference, such as Bharat Aluminium Co Ltd (Balco). Buyback of equity by cash-rich public sector undertakings is also being considered actively, as the government devises alternative plans to beat market blues.
The government can get richer by about Rs 5,000 crore if its sells 10 per cent. In Balco, the government currently holds 49 per cent.
The finance ministry is exploring the possibility of selling stake in companies where it is left with a minority share and selling further equity would not make much difference, such as Bharat Aluminium Co Ltd (Balco). Buyback of equity by cash-rich public sector undertakings is also being considered actively, as the government devises alternative plans to beat market blues.
The government can get richer by about Rs 5,000 crore if its sells 10 per cent. In Balco, the government currently holds 49 per cent.
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