Government is going aggressive, expects to raise Rs 50,000 crore from stake sales in state-run firms

The government is very confident about raising Rs 45,000-50,000 crore from stake sales in state-run firms in 2016-17, and has already drawn up plans to ensure that it is done.

According to a senior government official, this would be the highest amount raised from stake sales in state-run enterprises in a single year since the process was started in 1991-92.

"We will reach very close to the target. It would be closer to Rs 50,000 crore," a senior government official told TOI.

He also expects at least two strategic sales are expected in the current year. Strategic sales will result in the government reducing its holding below 50% or selling all shares in the company along with management control to a private entity.

"We have already covered a significant ground and we have a plan to reach the target," the official told TOI.

Currently, the Centre is targeting on raising Rs 56,500 crore from stake sale in state-run companies in the current fiscal year. This was lower than the Rs 69,500 crore target set for the previous year. Out of the Rs 56,500 crore target for 2016-17, Rs 36,000 was to be raised from minority stake sales, and Rs 20,500 crore from strategic stake sales.

So far, the government has raised Rs 23,528.7 crore, which includes Rs 21,432.4 crore through minority stake sale in 14 state firms, and Rs 2,096.3 crore through strategic disinvestment.