‘Tough to meet even trimmed FY20 aim’

NEW DELHI: The disinvestment department is sceptical over the prospects of meeting even the scaled down target of a Rs 650-bn mop-up from stake sale in government companies in the current fiscal ending March, two officials from the Department of Investment and Public Asset Management said.

The government has so far garnered Rs 350 bn from disinvestment.

The department feels the target could be a tall ask, given that there are just 42 days left in the current financial year, and the global investment climate has turned cautious after the outbreak of the coronavirus disease.

Earlier this month, the finance minister, in her Budget speech, announced a cut in the disinvestment aim for this fiscal to Rs 650 bn from Rs 1.05 trln. The target for 2020-21 (Apr-Mar) has been pegged at Rs 2.10 trln.

"We are hopeful that NTPC Ltd will conclude the acquisition of the government's entire stake in

North Eastern Electric Power Corp Ltd, and THDC India Ltd by March-end. However, the other transactions that are in the pipeline are either of very small value or will take more time to materialise," one of the officials said.

In January, state-owned power sector major NTPC's board gave its in-principle nod for acquisition of government's entire stake in

NEEPCO and THDC India.

The official said the disinvestment department expects to garner close to 150160 bln rupees from NTPC's proposed acquisition of NEEPCO and THDC.

In November, the Union Cabinet gave its in-principle nod to strategic disinvestment of Bharat Petroleum Corp Ltd, Container Corp of India Ltd, Shipping Corp of India Ltd.