UNBconnect... (UNB)

Indian govt urged to raise disinvestment target to US$14.3bln

Print
Reported by: AsiaNet/UNB
Reported on: Feb 25, 2012 12:17 pm
Reported in: Business
New Delhi, Feb 25 (Asianet/UNB) - Indian industry chamber Assocham on Friday asked the government to set a higher disinvestment target of Rs 70,000 crore (US$14.3 billion) for2012-13 fiscal to raise resources for development plans and bridge fiscal deficit.
"There are large cash reserves with private and public sector companies. Thus, the disinvestment process can be given a push with a target of Rs 70,000 crore for the next financial year," Assocham President Rajkumar Dhoottold reporters here.

The government, which had set an ambitious target of Rs40,000 crore in 2011-12, has been able to raise only Rs 1,145crore through stake sale in the Power Finance Corporation (PFC)this fiscal so far.

Due to bad stock market conditions, the government had to postpone stake sales of several blue-chip state-owned firms.