Finance Ministry: It is challenging to estimate the amount of revenues from disinvestment in FY24

 Finance Ministry: It is challenging to estimate the amount of revenues from disinvestment in FY24

The disinvestment revenue budget forecast for 2023–2024 has been maintained at Rs 51,000 crore.

Up till December 13, 2023, the Department of Investment and Public Asset Management (DIPAM) collected almost Rs 10,050 crore from disinvestment transactions.

The Finance Ministry has said that since it relies so heavily on investor interest and market circumstances, it is difficult to predict the actual proceeds from disinvestment for the current fiscal year.

The disinvestment revenue budget forecast for 2023–2024 has been maintained at Rs 51,000 crore. Up till December 13, 2023, the Department of Investment and Public Asset Management (DIPAM) collected almost Rs 10,050 crore from disinvestment transactions.

Disinvestment is a continuous process, and the ability to carry out transactions is contingent upon a number of factors, including investor interest, market circumstances, administrative viability, and the state of the local and global economies. Because of this, estimating the amount of real revenue from disinvestment during the current fiscal year is challenging, as Minister of State for Finance Bhagwat Kishanrao Karad said in a written reply to the Lok Sabha on December 18.

Strategic disinvestment, which entails selling the minority ownership in CPSEs as well as the managerial control transfer and sale of the full or significant government stake, is how the government's disinvestment strategy is put into practice.

Disinvestment via minority stake sales is sometimes carried out in PSEs, where the government maintains control, using a variety of SEBI-approved techniques, including initial public offerings (IPOs), offer for sale (OFS), share buybacks, etc. based on investor interest and the state of the market at the time.

Since 2016, the government has approved the strategic disinvestment of 36 public sector entities (PSEs) in principle. Ten of the 33 deals that DIPAM is handling—including those involving Air India and Neelachal Ispat Nigam Limited (NINL)—have seen the completion of strategic disinvestment.

BEML Limited, Shipping Corporation of India, HLL Lifecare, IDBI Bank, Container Corporation of India Limited, Rashtriya Ispat Nigam Limited, and NMDC Steel are among the companies involved in the current strategic disinvestment operations.

Due to insufficient interest from enough bidders to go forward, the Expression of Interest (EOI) procedure for Bhadravati Steel Plant, a division of Steel Authority of India Limited (SAIL), and Bharat Petroleum Corporation Limited was terminated. The deal was canceled and the victorious bidders for Pawan Hans Limited and Central Electronics Limited (CEL) were disqualified. The deal with the SAIL unit Alloy Steel Plant, Durgapur is now on hold.

DIPAM halted certain transactions, including Scooters India Limited's, since it was suggested that the PSE be closed.

According to him, it is not feasible to strategically disinvest in Engineering Projects India Limited and Bridge and Roof Company (India) Limited.

The administrative ministry is in charge of the process of strategically selling off different Bharat Tourism Development Corporation Limited assets.