The Union Government on Wednesday exuded confidence that it would be able to mop up the targeted Rs.40,000 crore from disinvestments in public sector companies in the current financial year.

The Centre has been buoyed by the strong response that the PSU share sales have got in the stock markets.

“Of course, the government will achieve the target of Rs.40,000 crore, which has been provided in the budget and the evidence is before us,'' Disinvestment Secretary Sumit Bose told reporters here.

He said the government had already mopped up around Rs.21,000-22,000 crore in the current fiscal and the public issues of MOIL and Shipping Corporation of India (SCI), which open this month, would take the disinvestment amount to over Rs.23,000 crore.

“Then we have issues of ONGC and SAIL lined up and we will surely achieve what we are supposed to in terms of raising Rs.40,000 crore,'' he added.

The public offer of SCI would open on November 30 and close on December 3. In 2009-10, the government had raised Rs.25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.

Mr. Bose said MOIL would become the first PSU to come with a public offer where retail investors can invest up to Rs.2 lakh.

“This would be the first issue by a PSU where retail investors will be able to invest up to Rs.2 lakh,'' he added.

On involving anchor investors for MOIL, Mr. Bose said the government had not roped in anchor investors as “there is adequate demand by FIIs.”

As per the new norms announced by the Securities and Exchange Board of India in October, the investment limit for retail investors in the initial share sale offer has been doubled to Rs.2 lakh. The government has fixed the price band at Rs.340-375 a share for the issue, which is expected to raise up to Rs.1,238 crore through the share sale programme. The issue has been priced, taking into account number of factors, including strength of the company, its management and assessment of its peer firms, he said.

The issue would raise a total of Rs.1,238 crore at the upper-end of the price band, including 5 per cent discount to retail investors and MOIL employees. Steel Secretary Pradeep Kumar Misra said the largest domestic producer of manganese ore was likely to be listed on domestic bourses by December 13.

“The tentative date for listing will be 10-12 days after the issue closes. The market for MOIL is fairly assured. The market should take this issue enthusiastically. We also welcome retail investor,'' he added.