Planned stake sales will fall short of Rs 51,000 crore disinvestment target.
Union Budget 2023: So far, the government has raised only Rs 31,000 crore in FY23 by selling its stake in public sector enterprises.
Budget 2023-24 is likely to be juggling act to meet the twin needs of capex and fiscal consolidation
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.
Disinvestment is a target that is mostly missed
Earlier, in February this year, the government had raised the target to Rs 90,000 crore for the financial year 2019-20, from the 2018-19 disinvestment target of Rs 80,000 crore.
The government has raised more than Rs 9,600 crore through IPOs of three CPSEs and a tranche of Bharat-22 ETF in the first six months of the fiscal so far.
Coupled with earlier payouts, it is the largest-ever dividend outflow by any Indian company in a financial year.
The Department of Investment and Public Asset Management (DIPAM) has so far realized about Rs 30,000 crore of disinvestment revenues.
The government has a Rs 54,000 crore disinvestment target of which only about Rs 4000 crore has been done so far. So, the government is relying on special dividends from cash rich PSUs in order to meet that target.
The Cabinet Committee on Economic Affairs (CCEA) approved disinvestment of government stake in State Trading Corporation and ITDC. The deal would fetch the government, Rs 30 crore.
The Finance Ministry today said the government's 12.5 per cent stake sale offer in Nalco will hit the markets on March 15, which could mop up around Rs 1,400 crore to the exchequer.
The government has now met 73 percent of its Rs 30,000 crore disinvestment target for this fiscal. What are the government targets for FY14 and what could be the likely disinvestment targets.
The decks maybe cleared for the government to auction its stakes in PSUs. Sebi's guidelines for the institutional placement programme is expected to be announced today, reports CNBC-TV18's Akanksha Sethi
It looked like the market was trying to behave a little better this week, preparing for the arrival of Santa Claus over the weekend.