A govenrment that is never known to do its homework correctly, therefore, hurtles from one failure to another. The Rs.300 billion disinvestment appears highly optimistic as the govenrment wanted to value the PSUs (they want to sell) at levels that are not warranted either by the market reality or due to the fact that the investors perceive the PSUs to be the milch cows of the govenrment (i.e. govenrment actually destroys the value of the PSUs by their sheer presence). So, after nearly seven and a half months in the current financila year, hardly any success is visible on the actual disinvrstment front. Quite a few attempts at disinvestment had to be shelved because the govenrment's greed went ahead of the market reality.
The fate of the ambitious Rs.400 billion 2G spectrum auction also hangs in balance as the industry players hsave givne a royal thumbs down to the govenrment's effort with high base price for circles like Delhi and Mumbai meant there were no takers whatsoever for the spectrum and even after seven rounds of bidding, 45% remains unsold. And we are talking only of GSM as there's no demand for CDMA at all.
With govenrment spending rising unabated and new schemes on the anvil, brace for a fiscal deficit of close to 6% (if not more) of GDP for the current year.