New Delhi: While the Centre takes swift action to disinvest Public Sector Units (PSU) in order to ease pressures on the exchequer, government companies are expected to reach the share market next year.

The Centre has decided to defer off loading its stake in big fish like SAIL and Indian Oil, as PSUs are not pushing the government to disinvestment. The Follow on Public Orders (FPO) of both the companies was to come to the market in the current fiscal year.

According to sources in the Disinvestment Department, the government was also exploring the possibilities of taking out FPO of ONGC. However, as the ONGC does not have adequate number of independent directors, the company is forced to defer the disinvestment plan to the next fiscal. It is mandatory for each company that floats its share in the market to have at least 50 percent independent directors on board. This is a part of SEBI’s filling norms.

If companies like SAIL, Indian Oil and ONGC disinvestment, then it would be easy for the government to reach its disinvestment target. In the budget 2010-2011, Finance Minister Pranab Mukherjee assured to reach a disinvestment target of Rs 40,000 crore. Seeing the condition of market, the government is also not interested to start the disinvestment process in the current fiscal.

In addition, the government is also planning to disinvest shares of RINL, MMTC, and NBCC. Hindustan Zinc may also be included in the disinvestment process to meet its target.

(JPN/ Bureau)