Economy

Govt's Rs 250-billion disinvestment deadline draws near, says report

Updated : June 27, 2018 12:05 PM IST

The government will be required to sell stake worth more than Rs 269.8 billion in less than two months in order to meet a regulatory deadline for minimum public shareholding, Business Standard reported on Wednesday.

The Securities and Exchange Board of India had granted an extension last year for listed state-owned companies to meet the 25 percent public shaerholding rule. The deadline expires on August 21.

An examination of current shareholding shows that the centre will have to sell Rs 181.4 billion in companies, excluding public sector banks. The state-owned banks would need another Rs 88.3 billion in stake sales, taking the total to Rs 269.8 billion, the report said.

The government has already missed it divestment deadline for Air India after it failed to garner even a single bid for the distressed carrier. The centre was looking to divest a 76 percent stake in Air India and offload about $5.1 billion of its debt.

The government may look to raise a record Rs 1 trillion from the sale of state assets in the current fiscal year that started on April 1, and Air India was expected to be a significant contributor.