Govt to tap OFS route in rest of FY

The government plans to tap the offer-for-sale (OFS) route for disinvestments in listed public sector enterprises during the rest of the fiscal year instead of initiating fresh strategic sales, a government official said.

- Gulveen Aulakh

“Towards the end of the fiscal year, there are usually a few OFS," the official said, adding this would not be done with the aim of meeting budget targets. “Some PSUs (public sector undertakings), where the minimum shareholding norms have to be met, may be considered," the official said on condition of anonymity.

The government decided against strategic disinvestments given weak market conditions, the official said. It is also averse to strategic divestments in PSUs that operate in states going into elections.

Governments go easy on disinvestments ahead of elections since many investors are wary of possible political changes, a senior economist said on condition of anonymity.

Queries to the finance ministry remained unanswered.