The finance ministry is internally expecting close to Rs 15,000 crore from NTPC’s acquisition of THDC and NEEPCO, and about Rs 5,000 crore from the planned IPO of IRFC, besides some buybacks.
So far, the Department of Investment and Public Asset Management has mopped up a little above Rs 35,000 crore. The transactions mentioned above will take the disinvestment
proceeds to around Rs 55,000 crore, which will be Rs 10,000-crore short of the revised estimates.
The target for the current fiscal was revised downwards to Rs 65,000 crore from Rs 1.05 trillion.
In her 2020-21 Budget, Finance Minister Nirmala Sitharaman
also revised downwards the tax revenue and total expenditure estimates for 2019-20, and widened the fiscal deficit target for the year to 3.8 per cent of gross domestic product from 3.3 per cent.
“The IRFC IPO will be done even in this market. Whenever there is a short window of opportunity this month, the IPO will be done. The OFSs are now likely to be done after March 31,” said the official. This means they will contribute to the 2020-21 budgeted divestment proceeds of Rs 2.1 trillion.
Last week, the Centre had divested 10 per cent of its stake in RITES through OFS. The issuance bombed. “We raised just around Rs 400 crore versus expectations of Rs 1,000 crore,” the official said.