Budget: Govt pegs FY24 divestment target lower at ₹51,000 crore
1 min read . Updated: 01 Feb 2023, 01:46 PM IST
Premium- The govt also cut the revised estimates from FY23 to ₹50,000 crore from the earlier target of ₹65,000 crore
New Delhi: The government has set a disinvestment target at ₹51,000 crore for FY24, lower than the previous financial year, according to the Union Budget for 2023-24 presented in Parliament on Wednesday. The estimates for FY23 has also been revised to ₹50,000 crore from the earlier target of ₹65,000 crore.
Mint had reported on 10 November that the government will go for a realistic disinvestment target in FY24, lower than FY23, since it had missed targets set for prior financial years, the most recent being ₹1.75 trillion target for FY22 which was revised downwards to ₹78,000 crore in the revised estimates in the Union Budget last year. The actual proceeds for FY22 were at a dismal ₹13,627 crore, primarily owing to the disruptions caused by covid-19 pandemic.
The government outlined plans to sell its shares in IDBI Bank, Shipping Corporation of India, BEML and Container Corporation of India. It aims to invite financial bids for the stake sale in IDBI Bank, which will spill over to FY24.
The government is proceeding with the disinvestment following demerger of non-core assets of Shipping Corp. and BEML. In addition, the government will seek expressions of interest for Concor following engagements with investors in recent road shows. But this, too, may take a more concrete shape only in FY24. Disinvestments through strategic sales of HLL Lifecare Ltd and Projects and Development India Ltd are in advanced stages, and the proceeds may come in this fiscal year itself. However, the overall proceeds are unlikely to meet the target set for FY23.
According to details from the department of investment and public asset management, the government had collected ₹31,106 crore as of 1 February, majority of which had come from the public listing of Life Insurance Corporation of India which sold 3.5% stake for ₹20,516 crore.
The government has shelved the strategic disinvestment of Bharat Petroleum Corp. Ltd, which was expected to bring in ₹50,000-60,000 crore. The disinvestment of Central Electronics Ltd has also been scrapped, Mint reported earlier. The disinvestment of Pawan Hans is also hanging fire following litigation against the winning bidder.
