PSU divestment in FY16?

FM Arun Jaitley is likely to set a target of over Rs.45,000 crore from PSU stake sale for FY16 in this budget. With divestment target of FY15 having achieved to a large extent, this target of around Rs.45,000 crore may not be seen too ambitions by the analysts. On the other hand, this will send positive signal to the market, which will be seen as a reform process, as also, will help FM to keep fiscal deficit for FY16 under control.

Govt. alone can mobilize close to Rs.30,000 crore by divesting 10% stake in ONGC . Having tested the success of 10% stake sale in Coal India, in one go for Rs.22,000 crore, this is seen both practical and achievable.

Apart from this Hind Zinc residual stake sale of 29.5%, held by the Govt. can fetch over Rs.25,000 crore, while 49% stake held in BALCO can give about Rs.5,000 crore. SUTTI stake held in ITC, L&T and Axis Bank is not being talked about. All the best to FM and advise him to be even more aggressive in these targets!