The government has agreed to sell stakes in five state-run companies, including oil refiner Bharat Petroleum Corp (BPCL), Finance Minister Nirmala Sitharaman said on Wednesday, a move that could help bridge a widening fiscal gap.
Prime Minister Narendra Modi's government has also approved the sale of holdings in logistics firm Container Corp of India and Shipping Corp of India, Ms Sitharaman told reporters after a Cabinet meeting.
The government has set a target of raising Rs 1.05 lakh crore ($14.6 billion) through the sale of state stakes in companies by March 2020. It has reached Rs 17,364 crore since April by selling minority stakes in government companies.
The government owns 63.75 per cent of Shipping Corp and a stake of 53.29 per cent in the country's second biggest state refiner BPCL, which industry sources estimate could fetch $8 billion to $10 billion.
Ms Sitharaman said management control of BPCL's subsidiary, Numaligarh Refinery Ltd (NRL), in Assam, will be given to another oil company for consolidation.
India, which has already announced a plan to sell national carrier Air India, faces tax shortfalls of around Rs 2 lakh crore in the current fiscal year, making the stake sales critical to relieving the deficit.
PM Modi's government has set a fiscal deficit target of 3.3 per cent of gross domestic product (GDP) for the current year, but economists and government sources say this is likely to slip to around 3.8 per cent.
The Centre also plans to offload stakes in Tehri Hydro Development Corporation India (THDCIL) and North Eastern Electric Power Corp (NEEPCO), which the government plans to hand over to state-run power producer NTPC.
The government plans to invite international energy firms to participate in the privatisation of state-owned oil companies, oil minister Dharmendra Pradhan said last week.
Separately, the Cabinet approved the import of 1.2 million tonnes of onions to curb local price rises, as well as a two-year moratorium for telecom companies to pay their spectrum dues.
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