Govt to stick to Rs 40,000 cr disinvestment target: Pranab

**New Delhi:**The government today said it willstick to its disinvestment target of Rs 40,000 crore for the2011-12 financial year, but achieving this goal will hinge onmany other factors.

“I am not revising it (the target) right now. We havefixed the target and we will try to achieve it, but it dependson many other situations, particularly the economic healthconditions,” Finance Minister Pranab Mukherjee told reporters

here.

[caption id=“attachment_134339” align=“alignleft” width=“380” caption=“The government plans to divest its stake in ONGC, BHEL, RINL,Hindustan Aeronautics and NBCC, among others.Reuters”]  [/caption]

Seven months of the ongoing fiscal are over, but thegovernment has been only able to raise Rs 1,145 crore througha stake sale in Power Finance Corporation (PFC) and there areapprehensions that it may miss the mammoth Rs 40,000 croretarget for 2011-12.

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Volatile stock market conditions have forced thegovernment to delay proposed stake sales in PSUs. Globalequity markets have been on a downslide on fears over thespiralling debt crisis in the eurozone, as well as the creditcrunch in the US.“All these aspects have to be taken into account and thegovernment will take a decision at the appropriate time,“Mukherjee said.

In view of uncertain market conditions, companies likeSAIL and Hindustan Copper (HCL) have deferred planned issuesof fresh equity issue, though the government may still goahead with its proposal to offload stake.It also plans to divest its stake in ONGC, BHEL, RINL,Hindustan Aeronautics and NBCC, among other companies.

Last fiscal, the government raised Rs 22,763 crorethrough the sale of equity in public sector enterprises.

PTI