Finance Minister Nirmala Sitharaman, while presenting the budget, has set a target of raising Rs. 2 lakh crore (1.75 lakh crore) through disinvestment within the year 2021-22, the govt is way from the target of disinvestment within the current fiscal year . While now only two months are left of this fiscal year . In such a situation, there’s little chance that the govt will get any major success this year on the disinvestment front.
Along with the announcement within the budget, the govt has set a target of raising Rs. 2 lakh crore from disinvestment within the new fiscal year , which is about Rs. 35 thousand crore but the previous fiscal year . Disinvestment of BPCL, Air India, CONCOR and SCI might be approved within the next fiscal year .
The minister of finance said that LIC features a decide to bring its IPO within the next fiscal year . aside from this, in sight of the boom within the stock exchange , the central government also can sell shares in some CPSEs through Offer purchasable (OFS). Other privatization deals also are expected to be completed by FY 2022.
Actually, thanks to the Corona crisis, many challenges have are available the way of disinvestment. the govt had announced to boost Rs 2.1 lakh crore through disinvestment within the last allow the fiscal year 2020-21. But considering the disinvestment figures thus far , the disinvestment figure within the current fiscal year can reach only about 30-40 thousand crores, which can be rock bottom within the last 5 years.
The target set by the govt within the current fiscal year is extremely difficult to realize . The target of disinvestment are often achieved up to a maximum of 20 percent within the current fiscal year . Because the govt has taken the choice to sell its stake in many companies.
So far, the govt has received only Rs 17,958 crore through disinvestment within the current fiscal year . Which is simply 8.5 percent of the disinvestment target. aside from this, the govt has sold the remaining 26.12 per cent stake in Videsh Sanchar Nigam Limited to Tata Communications. With which the govt will get Rs 8,000 crore during this fiscal year .