Only Rs 13,531 crore realised from disinvestment in current fiscal year
The centre has received dividends from worth Rs 57,602 crore during the current fiscal from various public sector undertakings, shoring up its total receipts for the current fiscal.
- Mar 31, 2022,
- Updated Mar 31, 2022 2:37 PM IST
The centre has realised nearly Rs 13,531 crore as the proceeds from disinvestment in the current fiscal year ending March 31 – missing the target by a wide margin on account of a delay in the listing of the Life Insurance Corporation of India among other factors.
This translates to just 18 per cent of the revised target of Rs 78,000 crore from disinvestment of state-owned enterprises for the current fiscal year.
Interestingly, an amount of Rs 1,107 crore was added to the overall disinvestment receipts details on the department of investment and public asset management (DIPAM) website earlier today, the last day of the fiscal year. This amount has been classified under the ‘others’ head as remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).
Earlier on February 1, the centre had slashed the projected collections from disinvestment for the current fiscal year (2021-22) to Rs 78,000 crore, as against the earlier target of Rs 1.75 lakh crore.
Even this lower target could not be met due to the delay in the LIC issue on account of market uncertainty following Russia’s invasion of Ukraine.
“We were expecting the LIC IPO to be go through this month itself. However, following the Ukraine war and subsequent market uncertainty, merchant bankers advised us to defer the issue,” a government official told Business Today TV.
The Finance Ministry has set a disinvestment target of Rs 65,000 crore for 2022-23, a goal that would easily be met with the proceeds from the LIC issue.
"Disinvestment and privatisation need to be seen beyond targets. They are complex processes and require the right environment to be executed including a favourable market,” added another official.
The government is now gearing up to launch the LIC issue sometime next month, followed by big-ticket transactions like the privatisation of oil retailer Bharat Petroleum Corporation Ltd, Shipping Corporation of India, CONCOR, IDBI Bank and Bharat Earth Movers Ltd.
The current year’s disinvestment receipts of Rs 13, 531 crore include Rs 2,700 crore from Air India's privatisation and Rs 3,994 crore from the sale of the SUUTI stake in Axis Bank Ltd. The centre also garnered a total of Rs 3,654 crore from the stake sale in NMDC, Rs 720 crore from the stake sale in HUDCO and Rs 742 crore from HCL among others.
Meanwhile, the centre has received dividends worth Rs 57,602 crore during the current fiscal from various public sector undertakings, shoring up its total receipts for the current fiscal. This takes the total receipts from DIPAM in the current fiscal year 2021-22 to just over Rs 71,132 crore.
(The story has been updated with the latest figures.)
Also Read: GAIL India to buyback 5.7 crore shares for Rs 1,083 crore
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The centre has realised nearly Rs 13,531 crore as the proceeds from disinvestment in the current fiscal year ending March 31 – missing the target by a wide margin on account of a delay in the listing of the Life Insurance Corporation of India among other factors.
This translates to just 18 per cent of the revised target of Rs 78,000 crore from disinvestment of state-owned enterprises for the current fiscal year.
Interestingly, an amount of Rs 1,107 crore was added to the overall disinvestment receipts details on the department of investment and public asset management (DIPAM) website earlier today, the last day of the fiscal year. This amount has been classified under the ‘others’ head as remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).
Earlier on February 1, the centre had slashed the projected collections from disinvestment for the current fiscal year (2021-22) to Rs 78,000 crore, as against the earlier target of Rs 1.75 lakh crore.
Even this lower target could not be met due to the delay in the LIC issue on account of market uncertainty following Russia’s invasion of Ukraine.
“We were expecting the LIC IPO to be go through this month itself. However, following the Ukraine war and subsequent market uncertainty, merchant bankers advised us to defer the issue,” a government official told Business Today TV.
The Finance Ministry has set a disinvestment target of Rs 65,000 crore for 2022-23, a goal that would easily be met with the proceeds from the LIC issue.
"Disinvestment and privatisation need to be seen beyond targets. They are complex processes and require the right environment to be executed including a favourable market,” added another official.
The government is now gearing up to launch the LIC issue sometime next month, followed by big-ticket transactions like the privatisation of oil retailer Bharat Petroleum Corporation Ltd, Shipping Corporation of India, CONCOR, IDBI Bank and Bharat Earth Movers Ltd.
The current year’s disinvestment receipts of Rs 13, 531 crore include Rs 2,700 crore from Air India's privatisation and Rs 3,994 crore from the sale of the SUUTI stake in Axis Bank Ltd. The centre also garnered a total of Rs 3,654 crore from the stake sale in NMDC, Rs 720 crore from the stake sale in HUDCO and Rs 742 crore from HCL among others.
Meanwhile, the centre has received dividends worth Rs 57,602 crore during the current fiscal from various public sector undertakings, shoring up its total receipts for the current fiscal. This takes the total receipts from DIPAM in the current fiscal year 2021-22 to just over Rs 71,132 crore.
(The story has been updated with the latest figures.)
Also Read: GAIL India to buyback 5.7 crore shares for Rs 1,083 crore
Also Read: Advance tax: Today is the last day to pay; here's what happens if you miss