The government has set a disinvestment target of Rs 51,000 crore for fiscal 2023-24
With fiscal 2022-23 set to end this Friday, the central government is expected to achieve its revised target of Rs 93,000 crore for disinvestment proceeds, including dividends.
As per official data, the total disinvestment receipts stood at Rs 87,771 crore until today. This includes Rs 34,007 crore from divestment of government shareholding and dividend proceeds worth Rs 53,764 crore. An additional Rs 6000 crore is expected by March 31, including Rs 5000 crore from dividends, a government official told Business Today TV. Of this, nearly Rs 3200 crore is expected as dividend from Hindustan Zinc, along with divestment proceeds from SUUTI Holdings.
While dividend receipts will surpass the revised estimate of Rs 43,000 crore, the government is still lagging behind with its disinvestment revised estimate of Rs 50,000 crore.
The pandemic-induced uncertainty, geopolitical conflict and the associated risks have posed challenges to the plans and prospects of the government’s disinvestment transactions over the last three years.
The government has set a disinvestment target of Rs 51,000 crore for fiscal 2023-24.
Potential transactions that are likely to be completed next year are IDBI Bank and Shipping Corporation of India, which have moved to the next stage after receiving expressions of interest. The government has decided to hold off on selling its residual stake in Hindustan Zinc until there is further clarity from Vedanta on its proposed plan of selling zinc assets.
