Govt aims to reduce stake in state-run firms to minimum in FY20 to meet disinvestment target figure of Rs 1.05 lakh cr

New Delhi: The government will attempt to cut its shareholding in state-run companies in 2019/20 to the minimum required under the rules, a government official said, as it seeks to shore up Rs 1.05 lakh crore ($15.30 billion) through stake sales in the current fiscal year. The government needed funds to meet its fiscal deficit target of 3.3 percent set for this fiscal year to March 2020. [caption id=“attachment_6013191” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The government aims to raise Rs 40,000 crore from exchange-traded funds, the official told reporters. The official declined to be identified. The government will likely raise around Rs 30,000 crore from privatisation of state-owned companies in this fiscal year, the official said. The government will initiate privatisation of Central Public Enterprises (CPSEs), including Air India, as it sets a record high disinvestment target of Rs 1.05 lakh crore that will see the government lowering its stake in some CPSEs to below 51 percent. Presenting the Budget 2019-20, Finance Minister Nirmala Sitharaman said the government has been following the policy of disinvestment in non-financial public sector undertakings (PSUs)  maintaining the government stake not to go below 51 percent. The government has set an all-time high disinvestment target of Rs 1.05 lakh crore, up from Rs 90,000 crore projected in Interim Budget 2019-20 in February. In 2018-19, the government raised Rs 84,972 crore from CPSE disinvestment, while in 2017-18, the figure was Rs 1,00,056 crore. — With PTI inputs