Indian government has raised 62,124 crore this year through disinvestment and<a href="https://www.mid-day.com/news/india-news/article/assets-created-in-last-70-years-being-sold-rahul-gandhi-on-national-monetisation-pipeline-23189281" target="_blank" rel="none noopener"> asset monetisation</a>, so far, achieving about 78 per cent of the FY27 target within 5 months, according to news agency PTI.
The Centre's FY27 budgeted disinvestment estimate and asset monetisation target is Rs 80,000 crore.
<h2>Divestment collection</h2>
It has mopped up Rs 55,757 crore so far, this fiscal through divestment in public sector undertaking (PSU).
The government sold minority stake in nine PSUs, which includes the high-value entities such as <a href="https://www.mid-day.com/business/business-news/article/lic-stocks-trade-higher-on-rbi-approval-to-increase-hdfc-bank-stake-to-999-per-cent-23645683" target="_blank" rel="none noopener">LIC</a> and Coal India, as well as through strategic sale of Indian Medicines Pharmaceuticals Corporation and remittances from SUUTI.
State-run insurance major Life Insurance Corporation of India (LIC) accounted for more than half of the disinvestment proceeds. The government had garnered Rs 31,515 crore by offloading 6.5 per cent stake in the company. Besides, Coal India's 2 per cent share mopped up Rs 5,542 crore, while its 6.01 per cent stake dilution in NHPC secured Rs 4,357 crore to the exchequer.
Earlier this week, <a href="https://www.mid-day.com/business/business-news/article/centre-raises-rs-3000-crore-from-6-per-cent-divestment-in-hindustan-copper-23646886" target="_blank" rel="none noopener">the government divested 6 per cent stake in Hindustan Copper</a> to raise Rs 3,041 crore.
Central Bank of India, coal mining firm NLC India, General Insurance Corporation of India (GIC), Indian Railway Finance Corporation (IRFC), and Cochin Shipyard, are some of the other PSUs in which the government has disinvested its stake. Besides, it raised Rs 6,367 crore through asset monetisation via infrastructure investment trusts (InvIT).
<h2>More stake sale on the cards</h2>
The government is also mulling a strategic sale in <a href="https://www.mid-day.com/business/business-news/article/idbi-bank-q1fy27-net-profit-jumps-5-per-cent-to-rs-2115-crore-23640415" target="_blank" rel="none noopener">IDBI Bank</a>. It has received revised bids from Dubai-based Emirates NDB and Prem Watsa-led Fairfax Financial Holdings, after a failed attempt earlier this year.
Amid concerns over expenditure exceeding the budget estimates due to higher energy and fertiliser import bills, the government is accelerating the drive for miscellaneous capital receipts or disinvestment and asset monetisation in the current fiscal.
The fiscal deficit target for FY 27 is at 4.3 per cent.
<h2>Divestment targets&nbsp;</h2>
Fixing separate disinvestment targets has been discontinued since the Revised Estimate (RE) of FY 2023-24. However, Rs 30,000 crore, Rs 33,000 crore, Rs 33,837 crore and Rs 80,000 crore were budgeted under Miscellaneous Capital Receipts for RE 2023-24, RE 2024-25, RE 2025-26 and Budget Estimate (BE) 2026-27, respectively, according to PTI.
In 2021-22 and 2022-23, as against the RE of Rs 78,000 crore and Rs 50,000 crore set in the Budget, the government had actually raised Rs 13,534 crore and Rs 35,294 crore, respectively.
In 2019-20 the actual realisation was at Rs 50,300 crore as against the RE of Rs 65,000 crore. In 2020-21 the realization amount was Rs 32,886 crore compared to RE of Rs 32,000 crore.
(With inputs from PTI)

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Home / Business / Business News / Article / Centre achieves 78 per cent of FY27 divestment, asset monetisation Budget target in five months