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The Government is clearing decks for making money from disinvestment in PFC and DCIL. Government is likely to sell 5 percent stake of Power Finance Corporation (PFC) next week.

Today share value of PFC closed at Rs 281.10 on BSE. At current market price, a sale of 5% stake means 6.6 crore shares would fetch the government around Rs 1,850 crore

The government today said that it was looking for merchant bankers to sell its 5% stake in Dredging Corporation of India Ltd (DCIL). The stake sale in DCIL, which cater to dredging requirements of Indian ports, could add about Rs 56 crore.

So far the government in this fiscal year has raised only Rs 1,700 crore through 5% stake sale in SAIL against the targeted Rs 43,425 crore.

To meet the targets fixed by the Finamce Ministry during the budget preparation, Government may opt the Blue-chip companies like ONGC, NHPC and Coal India for disinvestment.

In addition, it is also targeting Rs 15,000 crore from sale of residual stakes in private companies in this fiscal.

The Request for Proposal (RFP) for merchant banker to manage sale in DCIL will follow similar tenders for three blue-chip companies: IOC, BHEL and NALCO. Government has also invited tenders for merchant banker to assist it in selling stake in NMDC.

DCIL's shares ended today at Rs 401.40 for one share on the BSE, which is 1.62% less to yesterday's closure value. Market capitalization of the company is about Rs 1,124 crore.

Employees of both, PFC and DCIL, will get share at 5% discount.

-Kannamsai