The government could garner Rs 3.2 lakh crore as disinvestment receipts (excluding LIC) if it decides to cut down its stakes in all public sector enterprises, public sector banks and other financial institutions to 51 per cent
While the government announces its disinvestment target during the Budget presentation every year, it has achieved the target just once in the past five years. As per the Economic Survey 2022-23, Rs 4.07 lakh crore is the total amount realised by the government from disinvestments between FY15 and FY23 (as of Jan 18, 2023)
The number of listed companies, excluding LIC, in which the Government of India holds over 51 per cent stake stood at 68, as of December 31, 2022
HAL, Coal India and ONGC are among the top 10 companies that can add Rs 1 lakh crore to the exchequer if the central government were to reduce its stake to 51 per cent
More than 30 per cent stake dilution is possible in ten non-financial PSUs. However, that would only fetch Rs 23,500 crore due to the low market cap of firms such as HMT, KIOCL, Scooters India and more
SBI, Indian Overseas Bank, Union Bank, UCO Bank and Punjab National Bank are the top 5 lenders that can help the government collect revenues of around Rs 90,000 crore through divestment if the government cuts its stake to 51 per cent in PSUs
The government has garnered over Rs 31,000 crore so far from stake sales in 2022-23, and a bulk of it came from LIC’s Initial Public Offering (IPO)
If Public Sector Banks are divested, the banking sector can contribute the highest amount to the government’s coffers
The government is likely to miss the revised divestment target for FY23