With just two and a half months left for the financial year to get over, the government seems to be in a tearing hurry to meet the disinvestment target.
Sources in the finance ministry told NDTV that the government will not just depend upon big ticket disinvestments like Coal India and ONGC which were likely to help it meet its big divestment target of Rs 43,425 crore but will now look for more companies where a possible stake sale can happen.
According to a source in the Finance Ministry the government doesn't want to miss the disinvestment target for the year and will try to do as much as possible, given what the market allows.
The government is of the view that in a volatile market, it is better to spread your risks, hence it is in a process of getting an approval from the cabinet for 3-4 more companies where a possible stake sale can happen in this financial year itself. The government is looking to expand the options and is looking to divest across the sectors.
Cabinet approval is likely by January end and by February 10 the government is looking to have a list of 11 issues which will be ready to hit the market. The centre is looking to divest 10 per cent in MOIL as well this financial year. The government is also considering an ETF or exchange traded fund.
The Narendra Modi government had set up a big target for disinvestment for the financial year 2015 and the government was confident of not just meeting this target but even exceeding it, as the change at the centre had turned the market sentiment absolutely positive and stock markets were on a roll for quite some time but now as the markets have corrected, the government wants to draw up another plan.
From the next financial year onwards, the government is looking to consider stake sale through the year and not just in the last quarter to meet the target.