Government Closer To Achieving Rs 80,000-Crore Divestment Target For FY19
An employee holds a stack of electronic payment receipts and Indian Rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

Government Closer To Achieving Rs 80,000-Crore Divestment Target For FY19


The government’s divestment proceeds have touched Rs 53,558 crore so far in the current financial year against the full-year budget target of Rs 80,000 crore.

Last week, as much as Rs 10,000 crore came in from Bharat-22 exchange-traded funds and another Rs 5,379 crore from the sale of Specified Undertaking of Unit Trust of India stake in Axis Bank Ltd. The government has sold as much as 3 percent stake in Axis Bank held via SUUTI through an offer for sale and raised about Rs 5,300 crore.

Besides, the additional offering or Bharat-22 ETF garnered about Rs 10,000 crore to the exchequer. The issue got bids worth Rs 49,528 crore, with foreign investors pouring in Rs 38,000 crore and retail buyers Rs 2,000 crore.

Share buyback by Indian Oil Corporation Ltd. fetched Rs 2,647 crore to the divestment kitty, while Bharat Heavy Electricals Ltd., NHPC Ltd. and Cochin Shipyard Ltd. garnered Rs 992 crore, Rs 398 crore and Rs 137 crore, respectively.

NLC India Ltd. share buyback garnered Rs 990 crore, while National Aluminium Company Ltd. and Kudremukh Iron Ore Company got Rs 260 crore and Rs 205 crore, respectively. Besides, strategic disinvestment of HSCC fetched Rs 285 crore.

An offer-for-sale of Coal India Ltd. earned Rs 5,218 crore, while sale of units of CPSE ETF garnered Rs 17,000 crore. Besides, sale of Bharat-22 ETF has fetched Rs 8,325 crore in June 2018. The initial public offer of public sector undertakings Rites Ltd., Ircon International Ltd., Mishra Dhatu Nigam Ltd. and Garden Reach Shipbuilders & Engineers Ltd., fetched over Rs 1,700 crore.

The government has fixed disinvestment target for the next fiscal at Rs 90,000 crore.

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