New Delhi: Privatisation is the rout of Reformers in a hurry to fast-track development. The Modi government could raise, according to one reckoning, Rs 600-700 billion from asset sales, which could be included in its maiden budget to be presented on Thursday.
Steel Authority of India
The government is planning to sell 5% of Steel Authority of India Ltd shares, and the process is on. Â
Coal India Â
The world’s top producer, yet unable to meet output targets, is the third largest importer of coal. It is reported that the government is considering a direct sale of a 10% stake that would be worth around $4 billion at current prices.
Hindustan Zinc Â
The government may sell its entire minority stake in Hindustan Zinc, a subsidiary of London-listed Vedanta Resources Plc, India’s largest mining and non-ferrous metals producer. The stake, now worth $3.6 billion, was slated for sale last year but the deal was derailed by industry opposition.
Bharat Aluminium Â
The government may also auction the 49% it still owns in Bharat Aluminium Co. Ltd. It sold 51% a decade ago to Sterlite Industries. Â
NHPC Â
A 10% stake in hydroelectric power producer NHPC is being considered for sale.
Hindustan Aeronautics Â
The government is also considering selling a 10% stake in Hindustan Aeronautics Ltd, or HAL, in addition to raising the 26% cap on foreign participation in joint ventures in the defence industry.
Power Finance Corporation Â
The Power Finance Corporation, funding power projects in India, is also included; selling a further 5% stake is likely. Â
Rural Electrification Corporation Â
The Rural Electrification Corporation, funding rural electricity projects, may shed a 5% stake.
Marketing roadshows could fetch $340 million at current prices. The process will begin soon after the presentation of the budget, sources say. Â
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