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Rs 78,000 cr a small divestment target: DoD

Amid the ongoing controversies over the divestment process, the divestment ministry claimed on Tuesday that it could easily garner many times more funds than the divestment target of Rs 78,000 crore (Rs 780 billion) for the 10th Plan provided decks were cleared by the political executive.

Divestment secretary Pradeep Baijal expressed concern that the divestment process had slowed down considerably and warned that even the target of Rs 12,000 crore (Rs 120 billion) set for the current financial year was difficult to be achieved in the present circumstances.

He, however, declined to comment on the ongoing political debate on whether the government should not sell equity in profit-making public sector units or whether divestment should be pursued through public offerings and not strategic sale route.

"It is for the political executive to take a decision on these issues. Once we are told of the decision we can proceed. As we have put in place a transparent process, which allows divestment at much lesser time than what was experienced say in case of IBP and Co," he said.

On the potential of the resource mobilisation through divestment if given the go-ahead, Baijal said "it is possible to raise Rs 11 lakh crore (11 trillion) or 9 or 6 lakh crore (9 or 6 trillion) through divestment provided political process permitted."

He said that government has so far divested only 1.13 per cent of its total equity holding in the PSUs from which it has realised around Rs 11,000 crore (Rs 110 billion).

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