Govt aims to meet divestment target, says DIPAM Secy

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New Delhi, December 9

The government hopes to meet the disinvestment target of Rs 65,000 crore for the current fiscal, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Friday.

“We are mindful of value-based disinvestments, rather than chasing targets. We have already raised Rs 62,000 crore this year, including dividends of Rs 34,000 crore,” he said.

The first tranche of sale of Hindustan Zinc Limited (HZL) equity during the current fiscal will help the Centre meet the target, said Pandey while speaking at a CII conclave.

Rs 62,000 crore raised so far

The Department of Investment and Public Asset Management has so far raised Rs 62,000 crore from stake sales and dividends. But disinvestment receipts are only Rs 28,382 crore.

“We are working on the Hindustan Zinc offer for sale (OFS) and expect some stake dilution to happen in the current fiscal,” he said while ruling out the dilution of government stake in IDBI Bank and Concor in the current fiscal.

The government’s stake in HZL is currently worth nearly Rs 35,000 crore but the disinvestment proceeds will be a portion of this as the sale is being planned in tranches.

Pandey said the government wants Central Public Sector Enterprises (CPSEs) to improve their market cap and return on assets (RoA) as well as hive off non-core assets that are not linked to the operating companies’ main lines of business.