Friday, January 3, 2020

Government may fall short of FY20 disvestment target by 65000 cr

The sale of Bharat petroleum corporation(BPCL)container corporation  of India (concorp) and Air India is unlikely happen  in the current fiscal year. The government  has set a disinvestment  target of 1.05 trillion for 2019-2020(financial year 20) by a large margin of 65000 crore as strategic sale of  BPCL, CONCORP,AIR INDIA by the end of march.
  The ministry said that " the government  has to respond to what the potential bidders ask for.sometimes they seek time to examine financial statements. sometimes they do want to do physical due diligence.
  The proposed investment of BPCL are equity value is 56359 crore and stake sale is 53.3%.The air India  equity value is 18000 crore and stake sale is 100%. The Container corp  equity value is 10734 crore and stake sale is 31%.
  The govt fiscal deficit  plans has already covered 115 per cent  of the FY20 budget estimate by November.The other source  revenues such as taxes also likely to fall  short of target. the govt has the chance of miss the tax target of 24.6  trillion  by at least 2 trillion on account  of the corporation  tax rate cut,lacklustre GST collections and the economic slowdown.  The 42 per cent of the revenue collections will go to states.
 The govt managed to raise 17364 crore through disinvestment,84 per cent of  its disinvestment  target is yet to be realised. The BPCL 53.3 PER CENT STAKE is govt trying to disvest and to a strategic buyer which can at least fetch 56480 crore based on Thursday closing  price. the  government 31 per cent s stake in Concorpation which is  also marked  for strategic sale is valued at 10724 crore.
 The govt 67204 crore or higher can fetched from total transactions  can get the assets form strategic bidders.

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