Four and a half months of the current financial year have passed, but the government has not done anything special on the disinvestment front. Although the government plans to disinvest the stake of many companies in the current financial year. 6-7 government companies are in line for disinvestment in this financial year.
Disinvestment plans of these companies
Finance Minister Nirmala Sitharaman announced the financial year 2023-24 in the month of February. The target of disinvestment was set while presenting the budget. In the budget of the current financial year, the government has set a target of Rs 51,000 crore for disinvestment. There are plans to privatize companies like Shipping Corporation of India, NMDC Steel, BEML, HLL Lifecare, Container Corporation of India and Vizag Steel during this financial year. Apart from these, the government is also looking to sell its stake in IDBI Bank in the current financial year.
Target not met after 2018-19
Looking at the record of the last few years It is not looking easy for the government to achieve the target of disinvestment. For the last 4 years, the government has not been able to achieve its disinvestment target. The last time the government was successful in achieving the disinvestment target was 5 years ago. During the financial year 2018-19, the government had set a target of disinvestment of Rs 80,000 crore, while in that year the government was successful in raising Rs 84,972 crore. Since then every year the government is falling behind the target.
The target was so much in the last financial year
The government had lagged far behind the target in the last financial year also. For the financial year 2022-23, which ended on March 31, 2023, the government had set a target of raising Rs 50,000 crore from disinvestment, but could raise only Rs 35,294 crore. This situation happened when the state-run Air India was privatized during the last financial year itself.
Last year’s success here
Air India Privatization stuck for many years was completed and it was bought by the Tata group. The IPO of the government insurance company LIC also came during the last financial year only. The government had sold 3.5 per cent stake in the much-awaited IPO of LIC. Similarly, the government had also managed to sell its residual stake in Paradip Phosphates, IPCL and Tata Communications during the last financial year.
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