Centre mulls selling Rs 20,250 crore worth ITC stake: Report
The report quoted an unnamed official as saying that a final decision would be taken only after an assessment of the various choices
The government has initiated discussions on selling its 7.93% stake in ITC worth Rs 20,250 crore. The Centre’s holding in the cigarette-FMCG-hotel conglomerate is through the Special Undertaking of the Unit Trust of India. Government officials, who were aware of the development, said all options, including “bulk sales on the stock market and strategic divestment to domestic investors” are under consideration, according to a report in The Economic Times.
The report quoted an unnamed official as saying that a final decision would be taken only after an assessment of the various choices.
Divestment target
The government had set a disinvestment target of Rs 1.75 lakh crore for 2021-22. In the previous financial year it had collected Rs 32,835 crore from CPSE share sale and buybacks, surpassing the target set in the revised estimates (RE). The disinvestment proceeds last year was lower than the Rs 2.10 lakh crore budgeted. Later, the target was cut to Rs 32,000 crore after the Covid-19 pandemic impacted the economy and market.
Big-ticket plans
ITC disinvestment could be one of its big-ticket plans that the government might go ahead with this year.
The government on July 19 informed Parliament that it has “moved Rs 7,646 crore closer to its disinvestment target” for this fiscal.
According to the reply, the divestment list includes national carrier Air India and Bharat Petroleum Corporation Ltd, apart from some public sector banks.
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