A Win-Win Scheme That’ll Generate 25,000 Crore For Indian Govt.

Indian Economy is all set to draw an elevated graph this fiscal year as more than two dozen state-owned companies are going to make their shares available for public. As per the reports coming in, the new businesses could help the Government get around Rs. 25,000 crore in total; which is one-third of India’s record disinvestment target for the current financial year.

The list given by the Government embraces firms like ONGC Videsh, Southern Coalfields, Bharat Broadband, KIOCL and Mazagon Dock, Bharat Bhari Udyog Nigam, Antrix Corp., including various railway units.

The IPO, for sure, will open new doorways for investors into the equity market. Names from Travel and Tourism Industry have also been identified and have been added to the revenue making list. Hotels run by Indian Tourism Development Corp. (ITDC) have been acknowledged as a major profit generating segment.

Once in listing, it is going to benefit the depositors in a number of ways. Advantages like cash on redemption on a minimum tenure of one year, deposition of old jewellery as little as 30 grams will benefit the depositor.

"The idea is to create a pipeline for the next two-three years," the official spokesperson told Economic Times. This needs to be done as the Government is close to the 51 % stake level in several listed state-owned companies, the person said. "So, the ideal situation is that we have approvals for stake sale in these firms and we can proceed depending on market conditions," he added.