New NDA Government To Divest Stakes In At Least 10 PSUs; Targets Raising Rs 90,000 Crore In FY20

As the new government takes a change for the second term of the Prime Minister Narendra Modi led National Democratic Alliance (NDA), it is expected to take up immediate and swift privatisation or stake sale at least ten state-owned companies, reports Economic Times.

It an ambitious bid to achieve or surpass its target of raising Rs 90,000 crore from disinvestment proceeds in the financial year (FY) 2019-20 as the government looks set to sell stakes of a number of companies in which has attracted wide interest from private players.

The probable companies to be taken up first for the disinvestment drive could be Scooters India, Bharat Pumps & Compressors, Project and Development India (PDIL), Hindustan Prefab, Hindustan Newsprint, Bridge and Roof Company and Hindustan Fluorocarbons.

It is expected that stakes in some of the state-owned companies may be divested in the July-September quarter itself given the government already has the approvals for selling shares in about 24 companies including Air India.

It should be noted that the government had exceeded asset sale targets of Rs 1 lakh crore in 2017-18 and Rs 80,000 crore 2018-19. The massive mandate of 353 seats won by the NDA, is expected to give a further give a boost to the government's drive.