With government’s plan to mop up Rs 40,000 crore through equity divestment in state-owned

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companies being a non-starter, multiple options like public offers, private placements, share buybacks by cash-rich companies were being seriously pursued, disinvestment secretary Haleem Khan said on Friday.

“There is no change in disinvestment policy. Implementation framework of follow-on public offer may not suffice. We are looking at more option for disinvestment,” Khan told reporters after a meeting with state-run companies. “We have not aborted FPO route and will stick to FPO on BHEL and ONGC. We are not revising disinvestment numbers,” he said.

On Oil India, he said fin-ance ministry has obtained in principle approval from petroleum ministry. “At this point, we are looking into options for disinvestment.”

Cabinet approval for revised share sale in SAIL and Hindustan Copper is also being sought. The share sale in ONGC, BHEL and NBCC was delayed as companies failed to appoint requisite numbers of independent directors. Rashtriya Ispat Nigam has deferred its proposed initial public offer to next fiscal year citing choppy market conditions and restructuring.

Government had listed RINL along with Oil & Natural Gas Corp, Bharat Heavy Electricals, Steel Authority of India, National Building and Construction Corp and Hindustan Aeronautics for disinvestment target this year. So far government has garnered only Rs 1150 crore by divesting in Power Finance Corporation. This is a mere 2.9 per cent of disinvestment target of Rs 40,000 crore this financial year.

Earlier, finance minister Pranab Mukherjee said government was trying to meet disinvestment target but won’t rush with share sales unless market conditions improve. He is also keen on selling shares in Hindustan Zinc and Hindustan Copper.

Meeting disinvestment target is crucial for meeting the fiscal deficit projected at 4.6 per cent of GDP in 2011-12. The falling revenue collections in the face of economic slowdown and mounting expenditure on subsidies particularly on oil, has made it challenging” to meet fiscal deficit target.

Since August, Indian share market plummeted after Standard & Poor’s downgraded sovereign credit rating of US to “AA+” from “AAA” and the sovereign debt crisis in Europe worsened. “I am not revising it right now. We have fixed the target and will try to achieve it. But, it will depend on many other situations particularly the economic health condition,” Mukherjee said. “The government will take decision at appropriate time after taking into consideration all above aspects," he added.

There are 50 listed Central Public Sector Enterprises (CPSEs) which constitute 22.25 per cent share of total market capitalisation on Bombay Stock Exchange. “Through public offerings of CPSE, government has endeavoured to unlock true nature of these public sectors and to provide opportunity to people of India to become shareholders in these companies," he said.