With less than four months left in the current fiscal, the government today said it is looking at various options, including buyback of shares by PSUs, to meet the disinvestment target of Rs 40,000 crore for the year.
"We still feel that there is a possibility of it (achieving the target)," Finance Secretary R S Gujral told PTI, but added "nobody can be confident on this".
The Centre has set a mammoth target for raising Rs 40,000 crore through disinvestment this fiscal. But with eight months already over, it has been able to mop up only Rs 1,145 crore through the follow-up offer of Power Finance Corporation.
In the last fiscal too, the government could garner only Rs 22,144 crore against the target of Rs 40,000 crore through disinvestment.
Given the volatility in the capital market in the backdrop of global and domestic economic situation, the government has not come out with any public offer to sell its stake in PSUs, barring PFC, this fiscal.
The government is now looking at innovative methods to sell its holding in public sector units to meet the disinvestment target.
Under the buyback mode, the government can raise money by selling its equity in the company to the PSU itself.
Asked if share buyback by public sector undertakings is also among the options, Gujral said: "There are options, including buyback. That is one of the options".
The Secretary, however, said the decision on process of disinvestment will be taken by Finance Minister Pranab Mukherjee in consultation with Department of Disinvestment.
"It is between Disinvestment Secretary and the Finance Minister. If any of those options require Cabinet approval, the ministry will take it. We are working on it," he said.
According to sources, the DoD has circulated a Cabinet note to seek views of different ministries to sell government equity through buy-back mode in PSUs.
About a dozen cash rich units, Coal India, SAIL, NMDC, ONGC and NTPC, have been identified for the purpose, they added.
