The Centre has realised only Rs 12,423 crore from disinvestment in the current fiscal year ending March 31, 2022, missing the target by a wide margin on account of a delay in listing of Life Insurance Corporation of India (LIC), among other factors.
This translates to just under 16 per cent of the revised target of Rs 78,000 crore from disinvestment of state-owned enterprises for the current fiscal year.
Earlier on February 1, the government 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 listing of LIC 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 IPO some time next month, followed by big-ticket transactions like privatisation of oil retailer Bharat Petroleum Corporation Ltd, Shipping Corporation of India, CONCOR, IDBI Bank and Bharat Earth Movers Ltd.
The disinvestment receipt of Rs 12,423 crore for the current financial year includes Rs 2,700 crore from Air India's privatisation and Rs 2,994 crore from sale of SUUTI stake in Axis Bank Ltd.
Meanwhile, the Centre has received dividend worth Rs 57,601 crore during the current fiscal from various public sector undertakings, shoring up its total receipts for the current fiscal.
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