Govt plans to sell 3% of its stake in GAIL

Govt plans to sell 3% of its stake in GAIL

It is expected to fetch the govt Rs 1,800 cr

The government, running short on revenue collection on the account of disinvestment, is planning to sell three per cent of its stake in public sector gas utility GAIL India.

The divestment is expected to fetch the government over Rs 1,800 crore at current prices.
According to official sources, the Finance Ministry has moved a draft Cabinet note for inter-ministerial consultations for selling over 3.80 crore shares in GAIL.

Shares of GAIL India sunk to their lowest level in 17 months on the news that the government had finalised plans to sell a minority stake in the company to meet expenses.

Shares fell

GAIL shares fell 2.61 per cent, to Rs 344.95, on the National Stock Exchange.
The government currently holds 56.11 per cent stake in GAIL. The government plans to raise Rs 69,500 crore through PSU stake sales in the current  fiscal.

Of this, Rs 41,500 crore has to come from minority stake sale and another Rs 28,000 crore from strategic sale.

So far it has raised a little over Rs 3,100 crore through disinvesting stake in Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) due to volatile market conditions.