Rs100 bn shortfall in FY20 divest receipts?

The government estimates a Rs 100 billion shortfall in disinvestment receipts from the target of Rs 650 billion for the current financial year, Business Standard reported.

A number of offers for sale such as Coal India Ltd, IRCON International Ltd, NMDC Ltd, Steel Authority of India Ltd, among others, planned for March may get delayed due to bearish market conditions amid the spread of coronavirus.

"We had a number of OFS in the pipeline and wanted to do some of them within this month. We had even done roadshows. But the market has been falling due to coronavirus and other global cues. We won't go to the market in such conditions," the newspaper reported, quoting an official.

In the Budget for 2020-21 (Apr-Mar), the government cut its disinvestment target for the current financial year to Rs 650 billion from Rs 1.05 trillion pegged earlier, due to slow proceeds. Data released Friday showed total disinvestment proceeds in Apr-Jan was Rs 183.51 billlion, accounting for only 28.2% of the revised aim.

The transactions that are expected to be finalised by the end of March are acquisition of THDC India Ltd and North Eastern Electric Power Corp Ltd by NTPC Ltd, the newspaper reported.

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