Govt sure of meeting selloff target

The centre on Wednesday sounded optimistic in achieving the divestment target of Rs 4,000 crore (Rs 40 billion) this year and said three entities, including Power Grid and Power Finance Corporation, were expected to tap markets.

"Our target for this year has been budgeted at Rs 4,000 crore and we have already raised about Rs 2,600 crore (Rs 26 billion) so far," Poornalingam secretary (divestment) told the economic editors' conference.

Power Grid Corporation and Power Finance Corporation are some of the issues in the pipeline since they want funds for capital expenditure.

"I expect 2-3 such companies would come in the course of the year," he said.

He said the issues of PGCIL and PFC would be similar to that of NTPC through which Centre was able to rake in about Rs 2,600 crore.

On how much the government equity would be diluted in Power Grid and Power Finance Corporation, Poornalingam said it would be decided depending on the capital required.

Nothing has been finalised so far, he added. The divestment secretary said only the loss-making public sector entities, if they were not possible to be revived, would be sold.