The government is planning to sell stake in seven public sector units, including blue chip firms such as Steel Authority of India (SAIL). Government is planning to sell 10 percent stake in SAIL to fetch around Rs 2,500 crore. Currently, government is holding 75 percent stake in the company.
The Centre is also planning to sell 3 percent stake in Indian Oil Corporation (IOC) and 5 percent equity in Rural Electrification Corporation (REC). It also intends to offload 15 percent equity in Neyveli Lignite Corporation (NLC). Moreover, the government intends to sell 10 percent stake each in NHPC, NTPC and Power Finance Corporation (PFC).
The Centre currently holds 58.28 percent stake in IOC, 69.74 percent stake in NTPC and 74.50 percent stake in NHPC. Besides, it holds 90 percent in NLC, 67.80 percent in PFC and 60.64 percent in REC.
The part sale of government stakes in state-run and private firms is critical to meet the fiscal deficit target of 3.2 percent of gross domestic product in the year to March 2018. India is aiming to raise Rs 725 billion ($11.26 billion) through stake sale during the year.