Seven months of the ongoing fiscal are over, but the government has been only able to raise Rs1,145 crore through a stake sale in Power Finance Corporation (PFC) and there are apprehensions that it may miss the mammoth Rs40,000 crore target for 2011-12
New Delhi: The government today said it will stick to its disinvestment target of Rs40,000 crore for the 2011-12 financial year, but achieving this goal will hinge on many other factors, reports PTI.
“I am not revising it (the target) right now. We have fixed the target and we will try to achieve it, but it depends on many other situations, particularly the economic health conditions,” finance minister Pranab Mukherjee told reporters here.
Seven months of the ongoing fiscal are over, but the government has been only able to raise Rs1,145 crore through a stake sale in Power Finance Corporation (PFC) and there are apprehensions that it may miss the mammoth Rs40,000 crore target for 2011-12.
Volatile stock market conditions have forced the government to delay proposed stake sales in PSUs. Global equity markets have been on a downslide on fears over the spiralling debt crisis in the Eurozone, as well as the credit crunch in the US.
“All these aspects have to be taken into account and the government will take a decision at the appropriate time,” Mr Mukherjee said.
In view of uncertain market conditions, companies like SAIL and Hindustan Copper (HCL) have deferred planned issues of fresh equity issue, though the government may still go ahead with its proposal to offload stake.
It also plans to divest its stake in ONGC, BHEL, RINL, Hindustan Aeronautics and NBCC, among other companies.
Last fiscal, the government raised Rs22,763 crore through the sale of equity in public sector enterprises.
Kohinoor Foods has made a profit of Rs336.6 crore by transferring part of its business during the September 2011 quarter.
Rice exporter Kohinoor Foods (KFL) has reported a sharp jump in its net profit at Rs212.33 crore for the quarter ended 30 September 2011, on account of sale of part of its business.
The company's net profit stood at a mere Rs2.69 crore in the corresponding period last year, KFL said in a filing to the BSE. KFL has made a profit of Rs336.6 crore by transferring part of its business during the quarter. It has also invested Rs42.21 crore to acquire 15% shareholding in its joint venture company Kohinoor Speciality Foods Ltd, it said. The total sales rose to Rs278.38 crore during the concerned quarter from Rs251.99 crore in the same period last year, it added.
In the early afternoon, Kohinoor Foods was trading at around Rs39.50 per share on the Bombay Stock Exchange, 1.5% down from the previous close.
“We target to increase the capacity to 10 lakh units per annum from 6 lakh units at present," India Yamaha Motor national business head Roy Kurian said
Two-wheeler maker India Yamaha Motor said it will expand its production capacity by 4 lakh units next year with an investment of about Rs50 crore.
"We are targeting to increase our production and sales as we are witnessing very good demand for our products. We target to increase the capacity to 10 lakh units per annum from 6 lakh units at present," India Yamaha Motor national business head Roy Kurian said. The company will enhance the capacity of its Surajpur plant in Uttar Pradesh. Asked about the investment for this, Kurian said: "It will take about $10 million. We will only set up a separate line at the plant." India Yamaha Motor has another plant in Faridabad, where it manufacturers engines.
"We are targeting to sell 10 lakh vehicles in the domestic market by 2014. This year we are expecting to sell 3.3 lakh units in the domestic market," Kurian said. He said the company is aiming to sell 4.5 lakh units in 2012 and 7 lakh units in 2013. "On the export front, we are hoping to sell 1.7 lakh units in this year. It will grow in the next few years," Kurian said, adding the company is expecting to sell a total of 10 lakh two-wheelers in 2013.
Last year the company had sold a total of 3.8 lakh units, which included exports.
The company currently has a total sales point of about 1,200 outlets. "We are increasing our reach gradually. Next year, we will be adding 400-500 sales points," he said. The company is aiming to have 2,000-2,500 sales points across the country by 2014, he added.
India Yamaha Motor had reported 26.82% increase in its total sales in October 2011 at 47,240 units. During the month, the company's domestic sales stood at 38,229 units, up 20.25%. Exports rose by 65.04% to 9,011 units in last month.