Government Reaches 78% of FY27 Disinvestment and Asset Monetization Goals in Just Five Months
The Indian government has achieved approximately 78% of its FY27 budgeted target of Rs 80,000 crore for disinvestment and asset monetisation within the first five months of the financial year. So far, it has raised Rs 55,757 crore through minority stake sales in nine public sector undertakings, a strategic sale of Indian Medicines Pharmaceuticals Corporation Ltd, and remittances from SUUTI. Additionally, Rs 6,367 crore has been generated through asset monetisation via InvITs, bringing total capital receipts to Rs 62,124 crore.
LIC stake sale contributes more than half
A significant portion of the disinvestment proceeds, over half, originated from the government’s 6.5% stake sale in Life Insurance Corporation of India (LIC), which yielded Rs 31,515 crore. A 2% stake sale in Coal India generated around Rs 5,542 crore, while a 6.01% stake dilution in NHPC brought in Rs 4,357 crore. Earlier this week, the government sold a 6% stake in Hindustan Copper, raising Rs 3,041 crore. Other public sector entities involved in stake dilution include Central Bank of India, NLC India, GIC, IRFC, and Cochin Shipyard.
IDBI Bank sale remains on the table
The government is actively pursuing the strategic sale of IDBI Bank. Following an unsuccessful attempt earlier this year, it has received revised bids from Dubai-based Emirates NDB and Prem Watsa-led Fairfax Financial Holdings, according to news agency PTI. The government’s push for capital receipts through disinvestment and asset monetisation comes amid concerns that expenditures may exceed budget estimates due to rising energy and fertiliser import bills. The fiscal deficit target for FY27 is set at 4.3% of GDP.
Targets have varied over the years
The government has ceased to set separate disinvestment targets from the Revised Estimates of FY2023-24. Instead, amounts have been budgeted under Miscellaneous Capital Receipts. The budgeted amounts were Rs 30,000 crore for RE FY2023-24, Rs 33,000 crore for RE FY2024-25, Rs 33,837 crore for RE FY2025-26, and Rs 80,000 crore for BE FY2026-27. In FY2021-22 and FY2022-23, the government raised Rs 13,534 crore and Rs 35,294 crore, respectively, against Revised Estimate targets of Rs 78,000 crore and Rs 50,000 crore. In FY2019-20 and FY2020-21, actual realisation was Rs 50,300 crore and Rs 32,886 crore, respectively, against Revised Estimate targets of Rs 65,000 crore and Rs 32,000 crore.
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