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Budget 2014: Divestment target could be raised to Rs 38,000 crore

The finance ministry is of the view that the disinvestment estimate can be hiked as stock markets are going through a bullish phase.

Mail Today Bureau   New Delhi     Last Updated: June 26, 2014  | 09:07 IST
New divestment target could be Rs 38,000 crore

Union Finance Minister Arun Jaitley is likely to raise the target for resource mobilisation through disinvestment to around Rs 38,000 crore in his maiden Budget from Rs 36,925 crore proposed by his predecessor P. Chidmabaram in the Interim Budget for 2014-15.

According to sources, the finance ministry is of the view that the disinvestment estimate can be hiked as stock markets are going through a bullish phase and the new Securities and Exchange Board of India (Sebi) rules require a reduction of the government stake in all public sector enterprises to 75 per cent.

FULL COVERAGE:Union Budget

A senior official told MAIL TODAY that the disinvestment programme is expected to get off the blocks with the offloading of Coal India and SAIL shares followed by other blue-chip companies such as Oil and Natural Gas Corp.

"The finance ministry plans to dovetail its disinvestment with the requirement to meet Sebi rules, which will see the shares of more public sector companies coming into the market," the official added.

The ministry is also considering a proposal to allow rebate on income tax for women and senior citizens.


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