Now Reading: Centre raises 74% of ₹80,000-crore asset-sale target in four months
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Centre raises 74% of ₹80,000-crore asset-sale target in four months
The Centre has raised ₹59,082.95 crore, or 73.85% of its ₹80,000-crore asset-sale target for FY27, in the first four months of the financial year, according to official data reviewed by Mint. Of…
The Centre has raised ₹59,082.95 crore, or 73.85% of its ₹80,000-crore asset-sale target for FY27, in the first four months of the financial year, according to official data reviewed by Mint. Of this, ₹51,787 crore came from offer-for-sale (OFS) transactions in public-sector companies, with LIC contributing the bulk at ₹31,515 crore from a 6.5% stake sale in August.
Another ₹6,366.93 crore was raised through asset monetisation, and ₹2,553.43 crore through PSU dividends. Other major OFS transactions include Coal India (₹5,542.36 crore), NHPC (₹4,357.36 crore), and GIC (₹3,090.47 crore). The government had missed its budgeted disinvestment target for four consecutive years through FY23, before separate targets were discontinued from FY24.
Analysts said strong investor appetite for the OFS route could help meet the target, but noted the need for fiscal buffers amid global risks. The strategic sale of IDBI Bank, jointly held by the Centre and LIC, could provide a further boost to receipts.
Indian Opinion Analysis
The ₹80,000-crore target under miscellaneous capital receipts is not a formal disinvestment target, those were discontinued from FY24, but the government has consistently missed its budgeted asset-sale goals for four years through FY23. The LIC OFS alone accounts for over half the amount raised so far, which suggests the pace may slow sharply unless more large transactions, such as the strategic sale of IDBI Bank, close before March. IDBI Bank’s sale, where the Centre and LIC together hold about 95%, has faced repeated delays over valuation and bidder interest. The next concrete signal to watch is whether the government issues a formal expression of interest for IDBI before the end of the fiscal quarter.
Source: livemint.com
This story was synthesised by AI from the source linked above.
