New Delhi: The government does not want to take chances on disinvestment in this financial year. The government is making all efforts and trying all options to meet the disinvestment target. For that, they are not only relying on the market but also focusing on buyback and auction process to meet the disinvestment target of Rs 30,000 crore.  

Due to volatility in stock market, the government is not in favour of stake sales of PSUs through capital market. Since the government has already burnt their hands in the stock market last year, it is favouring auction route for stake sales in PSUs. Sources tell that the government has started its endeavours to incorporate FIIs, DIIs and high net worth investors in auction. It has started contacting merchant bankers for the cause.

The government seems to be very cautious while taking any steps this time as the auction route taken for disinvestment in ONGC was not a big success. Disinvestment department is seeking help from merchant bankers to rope in institutional investors in auction process. Sources tell that the disinvestment department will be trying to assess the mood of investors with the help of merchant bankers. With the help from LIC the ONGC was able to subscribe its issues.

With the disinterest of government, BHEL withdrew its application for public issue from SEBI. Sources tell that buyback or auction route will be taken for 5 percent stake sales in BHEL. The government is considering buyback and auction a suitable option for revenue generation. But this process will be opted on those PSUs with cash surplus. These companies include BHEL, IOC and SAIL.