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Indian Oil, EIL disinvestment lined up this month: Mayaram

04:49 PM Jun 01, 2019 | Free Press Journal Correspondant

New Delhi : The government plans to sell stakes in Indian Oil Corporation and Engineers India Ltd this month and in BHEL in February as it rushes to meet its disinvestment target of Rs 40,000 crore. The government also proposes to offload equity in Hindustan Aeronautics Ltd (HAL) in March, Economic Affairs Secretary Arvind Mayaram told PTI in an interview. 

“This will be very close to Rs 40,000 crore (target). Also in Exchange Traded Fund (ETF), we are going to float some of the PSU shares,” he said. Although the government had budgeted raising Rs 40,000 crore by way of public sector undertaking (PSU) disinvestment, it has so far managed to garner only Rs 3,000 crore from stake sales in seven PSUs, including Power Grid Corporation of India, Hindustan Copper, National Fertilisers and MMTC. As per the road map drawn up by the government, a 10 per cent stake sale in IOC and EIL each is expected to yield Rs 5,000 crore and 500 crore, respectively. It also proposes to mop up Rs 3,000 crore from a 10 per cent stake sale in HAL and Rs 2,000 crore from a 5 per cent stake sale in BHEL. The other major PSUs on the block include Coal India and RINL.
Oil PSUs may find difficult to hike
dividend payout

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Finance Minister P Chidambaram met the heads of Indian Oil Corporation (IOC), Oil India, NTPC, BHEL and Power Grid to discuss their capex plans and explore the possibility of getting higher dividend from them. “Our PAT (profit after tax) may be slightly lower than last year. So there are problems is terms of upping it (dividend). If the PAT is more we will pay more, if it is less, we will pay less,” Petroleum Secretary Vivek Rae said. He said last year OIL and IOC paid roughly 50% and 30% of PAT as divided.NTPC CMD Arup Roy Choudhury said the
dividend payout would be similar to last year or may be better.

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