Govt may consider buyback of shares

The government is likely to consider a modified proposal to raise funds through buyback of its equity by state-owned companies to meet the ambitious disinvestment target of Rs 40,000 crore for the current fiscal.

The proposal, which was put on hold in the last Cabinet meeting due to objections raised by certain ministries, is scheduled to be taken up again tomorrow, sources said.

The Department of Disinvestment has also suggested, among other things, promoting cross-holding of equities between CPSEs, which would help the government raise money without diluting its holding in such PSUs.