News Brief
Finance Ministry Set To Review FY24 Disinvestment Goals Amid Current Shortfalls
The government is reevaluating its plans to sell its stake in certain companies and evaluating how much money it can generate through these sales.
The Finance Ministry is planning a meeting this week to review the revised estimate for disinvestment for the fiscal year 2023-24 (FY24).
This assessment is necessary due to the absence of strategic sales of Central Public Sector Enterprises (CPSEs) this year, relying mainly on Offer for Sale (OFS) and Initial Public Offer (IPO) instruments, which have generated about Rs 10,051.73 crore so far.
As reported by Moneycontrol, the initial budget estimated Rs 51,000 crore from disinvestment for FY24, but adjustments are needed considering the current approach's limitations.
While strategic sales of CPSEs face complications, and issues with state governments have led to a substantial shortfall in the disinvestment target, dividends from CPSEs have been robust, totaling Rs 43,843 crore, surpassing the budget estimate of Rs 43,000 crore.
However, due to time constraints and complexities associated with strategic sales, major transactions are not expected to be completed this fiscal year.
The reliance on OFS and IPOs has proven insufficient to achieve the disinvestment target, highlighting the importance of strategic sales in meeting fiscal goals.
The Finance Ministry's meeting aims to address these issues and formulate a revised strategy for disinvestment in the coming fiscal years.
