Government Eye For Ambitious Disinvestment Plans In The Budget
Government aims to raise Rs 92,500 crores as ONGC purchases more than 51% stake of HPCL.
New Delhi/ Mumbai: Selling of state owned assets is going to be one of the prime focus of the government to raise funds of around Rs 1 lakh crores in the next fiscal year. The government aims to provide a friendly budget to the public just before the general elections to be held in the first half of 2019. For this reason it is focusing on generating funds by selling of state assets.
The investment bankers and the economists expect Arun Jaitley to set an ambitious budget for the next financial year, in which there will be more of asset sales to mitigate the problem of fiscal deficit. It can be said that the government is on track of meeting its target of achieving a revenue of Rs 92,500 crores after ONGC bought 51% shares of HPCL for Rs 36,900 crores. This year the government has a goal of Rs 72,500 crores and it has o ear achieved its target with this sale, which is supposed to be closed by the end of January 2018. India has exceeded its target for the 1st time in past 8 years.
It is also known from a reliable source that the government expects another such big sale by the end of March 2018; if this does not happen still the government will expect to reach a trillion of sales revenue by the end of next financial year.
As per another source government has a disinvestment plan of Rs 60,000 to Rs 70,000 crores by the end of financial year 2018–2019. Another big sale for the government is the foreign operations sales for Air India which is supposed to be closed by end of 2018. The public offerings for Bharat Dynamics and Rites Ltd. have indicated coming out with an IPO in 2018–2019.