By IAC Staff
A global commodity slowdown has emerged as a biggest challenge to India’s proposed disinvestment targets this year, as most of the state-owned companies identified for privatisation are part of the beleaguered sector, a senior minister was quoted as saying.
India was planning to divest state holding in its various oil marketing companies and Coal India as part of its plan to raise up to Rs 69,500 crore in the current financial year, but has had to pull back over valuation concerns.
One of the reasons why the divestment process is challenging right now is because many of the companies we are considering for divestment are in the commodity industries, Minister of State for Finance Jayant Sinha was quoted as saying by media.
The Department of Disinvestment is said to be of the view that the target for sale of stakes in state-owned firms should be halved to Rs 30,000 crore after the government raised only Rs 12,600 crore from divestment in four companies.
The government has identified 20 state-owned firms for divestment. It wants to shed 10 percent each in Oil India, Nalco and National Mineral Development Corporation, and five percent in NATPC, ONGC and BHEL. It also wants to a 10 percent stake in Coal India.