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Govt may sell off PSU shares to raise funds

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New Delhi: Privatisation is the rout of Reformers in a hurry to fast-track development. The Modi government could raise, according to one reckoning, Rs 600-700 billion from asset sales, which could be included in its maiden budget to be presented on Thursday.

Steel Authority of India

The government is planning to sell 5% of Steel Authority of India Ltd shares, and the process is on.  

Coal India  

The world’s top producer, yet unable to meet output targets, is the third largest importer of coal. It is reported that the government is considering a direct sale of a 10% stake that would be worth around $4 billion at current prices.

Hindustan Zinc  

The government may sell its entire minority stake in Hindustan Zinc, a subsidiary of London-listed Vedanta Resources Plc, India’s largest mining and non-ferrous metals producer. The stake, now worth $3.6 billion, was slated for sale last year but the deal was derailed by industry opposition.

Bharat Aluminium  

The government may also auction the 49% it still owns in Bharat Aluminium Co. Ltd. It sold 51% a decade ago to Sterlite Industries.  

NHPC  

A 10% stake in hydroelectric power producer NHPC is being considered for sale.

Hindustan Aeronautics  

The government is also considering selling a 10% stake in Hindustan Aeronautics Ltd, or HAL, in addition to raising the 26% cap on foreign participation in joint ventures in the defence industry.

Power Finance Corporation  

The Power Finance Corporation, funding power projects in India, is also included; selling a further 5% stake is likely.  

Rural Electrification Corporation  

The Rural Electrification Corporation, funding rural electricity projects, may shed a 5% stake.

Marketing roadshows could fetch $340 million at current prices. The process will begin soon after the presentation of the budget, sources say.  

 

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