EGoM fails to decide on ONGC, BHEL stake sale; to meet again
While the EGOM is slated to meet again to finalise the ONGC stake sale plan, heavy industries minister Praful Patel said that the BHEL disinvestment may happen in the next fiscal
New Delhi: With just one-and-half months left to meet the Rs40,000 crore disinvestment target for this fiscal, a panel of ministers today failed to take a decision on stake sale of blue chip oil major ONGC and engineering giant BHEL and decided to meet again to take a final call, reports PTI.
“(The government is) considering auction route for ONGC (disinvestment). No time line fixed as yet. Empowered Group of Ministers (EGoM) to meet again shortly”, petroleum and natural gas minister, S Jaipal Reddy, told reporters after the meeting of the EGoM here.
As regards BHEL, heavy industries and public enterprises minister Praful Patel said, “no decision on BHEL disinvestment...May happen next fiscal”.
The EGoM, which met under the chairmanship of finance minister Pranab Mukherjee, was slated to take a call on stake sale in the two major PSUs with a view to garnering about Rs14,500 crore in the current fiscal itself.
The government in the budget for 2011-12 had envisaged to raise Rs40,000 crore through PSU disinvestment, but in over 10 months it could mop up only Rs1,145 crore from stake sale in the Power Finance Corporation (PFC).
The target of Rs40,000 crore, according to disinvestment secretary Mohammad Haleem Khan, “is now almost impossible (to meet)”.
He further said that a final picture with regard to raising funds from disinvestment in the current fiscal would emerge after the next meeting of the EGoM.
The government is, however, hopeful that NBCC disinvestment might go ahead in the current fiscal, but that would only fetch Rs250 crore.
The government has been considering selling 5% government stake in ONGC to raise about Rs12,000 crore through the auction route.
It owns 74.14% stake in ONGC and proposed to offload 427.77 million shares or 5% equity.
In case of BHEL, the proposal is to offload 10% government stake in the state-owned company with a view to mopping up around Rs2,500 crore.
The auction route, which is being considered by the EGoM for stake sale, is aimed at allowing the government to complete the disinvestment process quickly and raise funds within the current fiscal which ends on 31st March.
The Securities and Exchange Board of India (SEBI) has already issued norms allowing promoters to sell stake by way of auction, through a separate window on the BSE and the NSE, which has to be completed within a day.
The share price of ONGC rose 1.78% to Rs280.90 during the mid-day trade on BSE, while BHEL shares were up 2.45% at Rs 271.45.
More in Moneylife
TODAY'S TOP STORIES
Keep your Money Safe: Avoid money traps and MLM
- Phaneesh Murthy: Let off by Infosys, sacked by iGate over sexual harassment charges
- Is the interest in Gold ETFs waning?
- OMCs to stop LPG deliveries to houses with multiple-connections from 1st June
- BSE to shift 29 scrips to T group category for failure to comply with demat norms
- Sun TV Networks announces 11% jump in its net profit
- S&P cautions India of rating downgrade; retains negative outlook
- COMPAT orders cement cos to pay 10% of the Rs6,307 crore penalty
- ITC net profit up 19.4%, aided by non-cigarette and agri-business segments
- Vikram Pandit to buy stake in JM Financial, to head its proposed banking arm
- MMM India, another MLM taking people for “double-your-money” ride
- RBI tells HDFC Bank not to make up its own KYC verification rules
- Why I-T returns of Pawar, Jindal and Gandhi are exempted from RTI?
- The draconian LBT: Local Body Tax explained
- How much longer can the FM, RBI ignore HSBC in India?
- Aadhaar: Private ownership of UID data- Part I
- Aadhaar: Who owns the UID database? –Part II
- Did HSBC Bank resort to toxic churning and illegitimate transactions to earn commissions?
- PNB Metlife refunds Rs25,000 to the correct policyholder: another Moneylife victory
- The draconian LBT: Local Body Tax explained
- Goa’s Advocate General is the highest paid across the country, reveals RTI
- Mass mis-selling: 59,000 investors in Kolhapur are alleged to have lost money in LIC ULIPs
- Do FIIs buy high and sell low – I? Maximum buying at peak index levels
- Investors lost Rs1 lakh crore due to poor regulation. Will there be a CBI probe?
- Directors of public sector banks: The ground reality
- Do FIIs buy high and sell low–II? Momentum-chasing
- Do FIIs buy high and sell low–III? Panic-selling during declines
- Has Rakesh Maria tried to salvage his image through Ram Gopal Varma’s film on the 26/11 attack?
What's your say?
What you said
Thanks for casting your votes! View Previous Polls
Join 22, 000 Others
- Daily & Weekly newsletters
- Access to www.moneylife.in to comment, create alerts
- Your own profile in Moneylife.in
- All special mailers
- Basic membership to MSSN, our new initiative
- Free ebooks
- Invitation to events
- Invitation to round-table meets
- Access to Insurance helpline
- Access to counselling sessions
- Access to Reading room in Mumbai