New Delhi, The government has pushed the pedal on its disinvestment and asset monetisation plan in the current fiscal, raising about 31 per cent of its full-year budgeted target in the first quarter itself.
Recording the fastest pace of disinvestment ever in the first quarter of any fiscal, the period between mid-May and June this year saw one offer for sale from the government every week for disinvestment of public sector enterprises.
Faced with the stress of increased expenditure on subsidy due to a higher import bill, the government is making all-round efforts to garner revenues, especially from the non-tax side.
Over the past six weeks, offer for sale (OFS) of six public sector enterprises hit the capital markets wherein the government garnered a cumulative Rs 18,561 crore. The six entities are Central Bank of India, Coal India, NHPC, NLC India, GIC and IRFC.
Separately, Rs 6,367 crore has come from asset monetisation under the Infrastructure Investment Trust (InvIT).
As against the full year target of Rs 80,000 crore envisaged in the FY27 Budget, the government has so far raised Rs 24,928 crore from disinvestment and asset monetisation.
It has already firmed up a pipeline of public sector companies to be divested in the current fiscal and hopes to exceed the Rs 80,000 crore budgeted disinvestment target.
The big ticket disinvestment in the current fiscal could be of Life Insurance Corporation (LIC). The government currently holds 96.5 per cent in the insurance behemoth and has to lower it to 90 per cent by May next year. The government had in May 2022, raised Rs 20,500 crore by selling a 3.5 per cent stake in LIC.
The strategic sale in IDBI Bank is also on the table. Despite a failed attempt earlier this year to sell its stake in the bank, the government is working to fast-track the sale process and invite fresh bids.
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