India to raise 160 B through privatisation in '04-'05

Tuesday, 03 February 2004, 20:30 IST
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NEW DELHI: The Indian government said Tuesday it would raise 160 billion ($3.47 billion) in the fiscal beginning April 1 by selling its stake in public sector undertakings to private entities. Presenting a vote-on-account or interim fiscal budget for 2004-05, Finance Minister Jaswant Singh said the government hoped to mop up 145 billion in the current fiscal ending March 31. The government had set a target of raising 132 billion in 2003-04 by selling its shares in blue-chip public sectors units but has so far managed to generate a meagre 13.35 billion. Singh said the government was confident of exceeding its target for 2003-04 and raise 145 billion by selling its stakes in as many as six public sector units over the next few months. The six state-owned companies that would float public issues to sell full or part of the government's stake are CMC, IPCL, IBP, Dredging Corporation, Oil and Natural Gas Corporation and Gas Authority of India Ltd. In a major setback to the privatisation programme, the Supreme Court in September last year restrained the government from privatising Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) without parliamentary approval. The Centre for Public Interest Litigation and the Oil Sector Officers' Association had filed petitions in the Supreme Court challenging the government's decision to privatise HPCL and BPCL without parliamentary approval. The apex court's verdict came as a blow to the government's efforts to raise money through the sale of its stake in public sector companies to rein in the spiralling fiscal deficit. Though the court has agreed to review its decision, the government has not been able to make much progress on the front of selling public assets.
Source: IANS