As we near the budget announcement for FY23-24, fresh interest is brewing around the divestment target that may be set for the next financial year and how much the government will be able to achieve during the current fiscal. There is still a long way to go for the government to even nearing the target announced in the budget for FY22-23.
The government has been setting its sights high when it comes to selling its stake in public sector companies but year after year has been falling short. For the current fiscal, the finance minister scaled down the target for divestment to Rs 65,000 crore, significantly lower than the previous year’s Rs 1,75,000 crore. Yet even this amount remains unachieved so far. In fact, the government has raised just Rs 28,383 crore to date as per data available on the Department of Investment and Public Asset Management (DIPAM) website. Of this, close to Rs 20,500 crore came from the initial public offering of the Life Insurance Corporation of India alone.