New Delhi: Buoyed by the prospect of a strategic sale in BPCL and Air India, Budget 2020-21 could set an ambitious stake sale target even though the Modi government may fail to meet the current fiscal’s Rs 1.05-lakh-crore selloff mark.
Finance ministry officials said it is now certain that the strategic sale of BPCL, Air India, Container Corporation of India Ltd (Concor) and Shipping Corporation of India (SCI) would be held in the next fiscal.
“This would give the leverage to go for ambitious numbers as they would garner enough money for the government next fiscal. The exact target would only be known on February 1.. it would certainly be ambitious numbers,” sources said.
They indicated that the strategic sale of these state- owned firms would at least yield Rs 1 lakh crore, and there would be follow-on public offers by PSUs, which could result in the target being set anywhere between Rs 1.30 lakh crore and Rs 1.50 lakh crore.
While the government plans to privatise Air India by selling its 100 per cent ownership in the airline, it will divest its entire 53.29 per cent stake in BPCL and 30.8 per cent of its current 54.8 per cent stake in Concor and 63.75 per cent stake in SCI.
Madan Sabnavis, chief economist of Care Rating, however, said: “The divestment target for 2020-21 is likely to be Rs 1 lakh crore, Rs 0.1 lakh crore lower than the budgeted target for 2019-20 as the timelines for the divestment are yet to be specified.”
23/01/20 R. Suryamurthy/Telegraph
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