The government has already cleared the 
disinvestment of NHPC and Oil India but 
could not tap the capital market due to the 
prevalent negative sentiment........
 

New Delhi: Prime Minister Manmohan Singh on Thursday indicated that the full 
Budget for 2009-10 may announce a disinvestment of government stake in public 
sector companies.
 
“Fiscal prudence and disinvestment of public sector units -- all these issues 
will be tackled by the finance minister in the Budget,” Singh told reporters 
after the second round of swearing in of union ministers at Rashtrapati Bhawan.
 
The Prime Minister said economic growth would not come at the cost of fiscal 
prudence. “We would ensure economic growth momentum but at the same time fiscal 
prudence will be kept in mind,” he said.
 
A host of companies waiting for the government nod for disinvestment include 
Bharat Sanchar Nigam Ltd (BSNL), railway consultancy firm RITES, National 
Aviation Company, and Ircon.
The government has already cleared the disinvestment of NHPC and Oil India but 
could not tap the capital market due to the prevalent negative sentiment.
 
Fund mobilisation by the government by way of initial public offers (IPOs) 
declined in 2008. There was only one PSU IPO, which was that of Rural 
Electrification Corporation, worth Rs1,421 crore.
 
In 2007, there were four PSU IPOs, including those of Power Grid Corporation 
and Power Finance Corporation, worth Rs5,580 crore.


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