Budget 2014: State-Owned Firms That Could Go On The Block

BANGALORE: Modi government is setting up to whittle down state stakes in firms that have been partially sold, but not granting overall control. Although stocks were given hike this year i.e. upto 23 percent in 2014, some of the industries have outperformed. Thus government has decided to sell appropriate state-owned shares from the respective firms.

The privatization target could reach 700 billion (70, 000 crore), in proceeds from asset sales when FM Arun Jaitley will reveal in his maiden budget, reports Reuters.

These companies may go on for a block:

1. Steel Authority of India

Steel Authority of India is one of the largest state-owned steel making companies in India and one of the top most in the world.

With a state shareholding of 80 percent in the company, it is estimated that government is planning to sell 5 percent of company’s shares in the end of July month. Moreover, market road shows for the deal predict around $340 million. This divestment is likely to help the government financially to confront the potential increase in the budget deficit.