Govt can raise $16.6 Billion via divestment

Monday, 29 June 2009, 02:24 Hrs   |    11 Comments
Printer Print Email Email
Govt can raise $16.6 Billion via divestment
New Delhi: The government can raise about 80,000 crore ($16.6 billion) by divesting stake in public sector units, says an industry lobby report.

"Dilution of stake in leading public sector units alone could fetch at least 80,000 crore," the report by Associated Chambers of Commerce and Industry (Assocham) said, adding that this amount could be used to bring down the fiscal deficit burden.

To overcome the immediate deficit, the government may have to borrow 2.4 trillion crore from the market by September, it added.

Even a 10 percent dilution in public sector giants could fetch 60,000 crore and a 20 percent dilution would still leave the government in control of these units, Assocham said.

"NTPC alone could fetch 68,000 crore if the government stake is reduced from 89.5 percent to 51 percent. The four power sector giants together could give 98,000 crore," it added.

It urged the government to adhere to the Fiscal Responsibility and Budget Management (FRBM) Act, maintain a low tax regime and introduce goods and services tax (GST) by next April to narrow the deficit.

The FRBM Act was enacted in 2003 to bring in fiscal discipline, and imposes limits on fiscal and revenue deficits.

"There is no need for accepting a long-term fiscal deficit and deviation from FRBM goals," Assocham added.
Source: IANS
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..