India may squeeze state firms for cash

NEW DELHI: India’s plan to raise about US$9bil from state asset sales this year is in tatters, prompting the government to consider demanding state-run firms pay higher dividends as a way of papering over cracks in its budget.

Four finance ministry officials with direct knowledge of the matter said that with the stakesale target looking increasingly difficult to reach, they were preparing to take a decision early in the new year on other ways to raise cash.