NEW DELHI : The Empowered Group of Ministers will soon finalise the composition of the basket for the proposed public sector exchange-traded fund, a finance ministry official said. “The EGoM will soon approve the basket for PSU ETF. The basket will comprise 10-11 companies,” the official said.
The government aims to launch the ETF in February, the official said. Of the 32 listed public sector companies, 10-11 companies will be chosen for the ETF based on their performance in the last three years, capital expenditure, and dividend payment record, the official said. The companies, which are likely to form the basket include Oil and Natural Gas Corp Ltd, Coal India Ltd, Indian Oil Corp Ltd, Oil India Ltd and Power Grid Corp of India Ltd, the official said.
Out of the total divestment target of 400 bln rupees from public sector companies in the current financial year ending March, the government hopes to raise about 50 bln rupees from the exchange-traded fund. The government has raised about 29 bln rupees from divestment so far in 2013-14. -Cogencis