The government on Friday said it will stick to its divestment target of Rs 40,000 crore (Rs 400 billion) for the 2011-12 financial year, but achieving this goal will hinge on many other factors.
"I am not revising it (the target) right now. We have fixed the target and we will try to achieve it, but it depends on many other situations, particularly the economic health conditions," Finance Minister Pranab Mukherjee said.
Seven months of the ongoing fiscal are over, but the government has been only able to raise Rs 1,145 crore (Rs 11.45 billion) through a stake sale in Power Finance Corporation (PFC) and there are apprehensions that it may miss the mammoth Rs 40,000 crore (Rs 400 billion) target for 2011-12.
Volatile
stock market conditions have forced the government to delay proposed stake sales in PSUs. Global equity markets have been on a downslide on fears over the spiralling debt crisis in the euro zone, as well as the credit crunch in the US.
"All these aspects have to be taken into account and the government will take a decision at the appropriate time," Mukherjee said.
In view of uncertain market conditions, companies like SAIL and Hindustan Copper (HCL) have deferred planned issues of fresh equity issue, though the government may still go ahead with its proposal to offload stake.
It also plans to divest its stake in ONGC, BHEL, RINL, Hindustan Aeronautics and NBCC, among other companies.
Last fiscal, the government raised Rs 22,763 crore (Rs 227.63 billion) through the sale of equity in public sector enterprises.
"I am not revising it (the target) right now. We have fixed the target and we will try to achieve it, but it depends on many other situations, particularly the economic health conditions," Finance Minister Pranab Mukherjee said.