India: Budget Estimates Disinvestment Proceeds At INR38.40BN During 2006-07

The government has fixed budgetary estimate for disinvestment proceeds at INR38.4 billion for fiscal 2006 - 2007. These estimates have been based on valuation ofNational Mineral Development Corporation LimitedandPower Finance Corporation Ltd.as on March 31, 2005.FMP Chidambaramhas not fixed any disinvestment target for the next fiscal. However, Chidambaram said that around INR70 billion could be realized by off-loading government stake in various public sector enterprises in fiscal 2006 - 2007. Chidamabaram said that government might divest its stake in as many as six to eight companies during this year. Chidambaram also said that loss-making companies would either be sold off or closed down.