The government is looking to raise up to Rs 150 billion ($2.18 billion) by reducing its stake in 18 state firms to 75 percent, a finance ministry official involved in the matter said on Monday, as it aims to boost revenues and rein in the fiscal deficit.<\/p>\n
Finance minister Nirmala Sitharaman kept an ambitious target of Rs 1.05 trillion ($15.33 billion) from the sale of stakes in state-run companies, compared with Rs 850 billion the previous year, in her budget on Friday for the fiscal year that began on April 1.<\/p>\n
While a third of the divestment target will be met by the outright sale of state enterprises, including Air\u00a0India<\/span>, the other sales will be done through a rule under which all listed entities must keep public float of at least 25 percent after three years of listing.<\/p>\n But governments have been putting this off for state firms, winning extensions from the Securities Exchange Board of\u00a0India\u00a0<\/span>(Sebi) each year.<\/p>\n The government is aiming to meet the Sebi norms in state-owned companies this fiscal, said the ministry official, who refused to be identified as he is not allowed to speak to the media, referring to the Securities and Exchange Board of\u00a0India<\/span>.<\/p>\n The government is planning to sell 10 percent each in state-owned reinsurers General Insurance Corporation of\u00a0India\u00a0<\/span>(GIC) and New\u00a0India\u00a0<\/span>Assurance (NIA) which will bring its stakes to 75 percent in the two giant companies.<\/p>\n In her budget, Sitharaman proposed raising the minimum public shareholding for listed entities to 35 percent from 25\u00a0percent as part of efforts to make the market more accessible to retail investors.<\/p>\n But the finance ministry official said the new regulation would require at least two years to go into force after approval by the Sebi.<\/p>\n Asia’s third largest economy is banking on state enterprise sales, dividends from the central bank and additional levies and taxes to meet a fiscal deficit target of 3.3 percent of gross domestic product from 3.4 percent previously announced.<\/p>\n The official said the government was willing to sell 100 percent of debt-ridden Air\u00a0India\u00a0<\/span>after a previous offer of 76 percent control received no buyers.<\/p>\n Air\u00a0India\u00a0<\/span>is their biggest bet, the official said. The government expects to get Rs 150 billion from selling the air line.<\/p>\n The government is hoping to sell at least a 5 percent stake in Coal\u00a0India\u00a0<\/span>and ONGC, the official said.<\/p>\n","protected":false},"excerpt":{"rendered":" The government is looking to raise up to Rs 150 billion ($2.18 billion) by reducing its stake in 18 state firms to 75 percent, a finance ministry official involved in the matter said on Monday, as it aims to boost revenues and rein in the fiscal deficit. Finance minister Nirmala Sitharaman kept an ambitious target […]<\/p>\n","protected":false},"author":1,"featured_media":3429,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[4050,190,424],"class_list":["post-5756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-and-politics","tag-air-india","tag-coal-india","tag-ongc"],"aioseo_notices":[],"yoast_head":"\n