Govt mulling residual sale in 5 PSUs

The government is planning disinvestments in at least 5 PSUs including Maruti, Balco, Bhel, Oil India and Powergrid in the next few months as part of efforts to raise Rs 5,000-7,000 crore in 2005-06.

"The government is thinking of residual stake sale in case of Maruti and Balco in the next few months," a finance ministry official said today.

IPOs of Oil India and Powergrid Corporation of India is also being explored for next fiscal, official said.

Government also intends to offload 5% stake in Bhel.

The move is part of efforts to mop up Rs 5,000-7,000 crore in 2005-06 through sale of government equity in PSUs. The disinvestment process is likely to gather momentum from 2006-07.

Finance minister P Chidambaram has targeted a whopping Rs 50,000-70,000 crore mop up from disinvestment of PSU shares in the next 4-5 years.

The entire amount would go into the National Investment Fund to be managed by professional fund managers like UTI Mutual Fund, LIC Mutual Fund and SBI Mutual Fund.

The dividend from the National Investment Fund would be spent for funding social schemes and restructuring of PSUs.

"Unless a significant amount is raised as corpus for the National Investment Fund, it will not yield enough money for social schemes," the official said.

Government has already prepared a list of PSUs, whose shares could be sold in the market without diluting government holding below 51%.