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Budget 2012 : Divestment target set at 30,000 cr

, March 16, 2012, 0 Comments

After missing the target for current year, Finance minister cautiously set a target of Rs. 30,000 cr from stake sale in public sector undertakings. He commented that government is committed in its effort to enhance people’s shareholding of Central Public sector enterprises (CPSE) at the same time a minimum of 51% ownership and management control will remain with government.

It is to be noted that this year government has completely failed in its target to garner 40,000 cr from divestment. So far only 14,000 cr is being mobilsed and that is due to 5% stake sale in oil major ONGC. ONGC [stockquote]ONGC [/stockquote] was the first PSU, where government tried to raise money through auction route but did not find sucess in real term. Domestic institutions such as LIC and SBI had to pitch in and subscribe virtually entire issue.