MUMBAI (Reuters) – India is likely to cut its disinvestment and asset monetization target by 40% by 2024-25. in the federal budget to be presented next month, The Economic Times reported on Saturday, as the planned sale of state-owned companies comes to an end. many failures.
The government is likely to revise the target to less than 300 billion rupiah ($3.47 billion) from an initial 500 billion rupiah, the newspaper said, citing people familiar with the discussions.
The government may set a target of around 450 to 500 billion rupees for the next fiscal year as it aims to conclude IDBI Bank (NS:) transaction and strengthen its asset monetization offering, the report said.
The Finance Ministry did not immediately respond to a Reuters email seeking comment.
The Government of India, which owns 45.48% in IDBI Bank, is also state-owned Life insurance (NS:) Corp of India which holds 49.24%, together plan to sell 60.7% of the lender. The sale process was first announced in 2022.
Prime Minister Narendra Modi’s administration departed from the usual practice of setting a target for stake sales in the budget presented last year.
Modi’s ambition to privatize state-owned companies has been sidelined by regulatory hurdles, complex decision-making, political considerations and valuation issues, but his government has managed to sell more stakes than any previous administration.
The government has collected 86.25 billion rupees from disinvestment so far this fiscal year.
The government will continue to reduce its holdings in some entities through a sale offer, the report added.
($1 = 86.5710 Indian Rupees)
