Economic Survey: Govt met 48% of FY23 disinvestment target
1 min read . Updated: 31 Jan 2023, 06:02 PM IST
PremiumThe government had collected ₹31,106 crore as of 31 January, majority of which had come from the public listing of LIC which sold 3.5% stake for ₹20,516 crore
New Delhi: The government has achieved 48% of its disinvestment target of ₹65,000 crore for FY23 as of 18 January, the Economic Survey tabled in Parliament on Tuesday showed.
“Out of the budgeted amount of ₹65,000 crore for FY23, 48% has been collected as of 18 January 2023," the survey said.
According to details from the department of investment and public asset management, the government had collected ₹31,106 crore as of 31 January, 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 survey noted that the amount did not include ₹12,100 crore received as enterprise value for Neelachal Ispat Nigam Limited (NINL) transaction as the government didn’t have any direct equity as it was the joint venture of central and state public sector enterprises.
The survey noted that non-debt capital receipts, which comprise recovery of loans and advances, and disinvestment receipts, have evolved as an important component of the non-debt receipts for the government. It added that government was committed towards disinvestment but the sales were dependent on external factors including geopolitical conflicts and uncertainty due to the pandemic.
“The pandemic-induced uncertainty, the geopolitical conflict, and the associated risks have posed challenges before the plans and prospects of the government’s disinvestment transactions over the last three years. Nevertheless, the government has reaffirmed its commitment towards privatisation and strategic disinvestment of public sector enterprises by implementing the new public sector enterprise policy and asset monetisation strategy," the survey said.
The survey said that during FY15 to FY23 (as of 18 January 2022), ₹4.07 trillion had been realised as proceeds from disinvestment through 154 transactions. This included ₹3.02 lakh crore from minority stake sale. It also included ₹69,412 crore from strategic disinvestment transactions in 10 CPSEs including Air India, Kamrajar Port, Hindustan Petroleum Corporation Limited, Rural Electrification Corporation and National Projects Construction Corporation.
