Union Budget 2015 India Expectation: FM may announce Rs 45,000 crore disinvestment target for FY16

Finance minister Arun Jaitley is likely to announce an ambitious Rs 45,000 crore disinvestment programme for the year starting April 1 when he presents the Budget in parliament on February 28. That would allow him to keep the fiscal deficit on a tight leash while finding the money needed for a public spending push. Asset sales of that magnitude would put it on par with what government wants to raise in this fiscal year.

The Narendra Modi administration is likely to seek an early start to the disinvestment programme by lining up about 10 share-sale initiatives, including IPOs. The overall target could be higher after including residual stake sales.

Companies likely to be in the list include rail companies such as Container Corporation of India (Concor) and Ircon International.

“The target for the year could be in the range of Rs 40,000- 45,000 crore,” said a senior government official aware o ..

The government feels that it can get the sale process under way quickly with one offer a month as a large number of companies have already been cleared for stake sales or are in the process of being approved.

“We are in talks with various administrative ministries and in the process of identifying companies,” said the finance ministry official, requesting anonymity. “Cabinet approvals for some firms have already been taken. Unlike the last few years, the next fiscal disinvestment proces ..

Experts said it will be difficult for the government to meet the disinvestment target unless it puts stock in the big state-owned companies on sale.

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