Govt sets divestment target of Rs 65,000 cr for FY23

New Delhi, Feb 1 (Agency) The government has revised its disinvestment target downward for the current financial year to Rs 78,000 crore in the face of delay in privatisation of PSUs like BPCL and Shipping Corporation of India (SCI). It expects to collect Rs 65,000 crore from disinvestment in 2022-23, as per the Budget document tabled in Parliament on Tuesday. Hoping to list insurance behemoth LIC and push strategic sale of companies such as BPCL and SCI, the government had set Rs 1.75 lakh crore disinvestment target for the current financial year.

While there is delay in strategic sale of some PSUs due to pandemic and procedural issues, the government managed to complete transaction for Air India days ahead of the Budget. Presenting Union Budget 2022, Finance Minister Nirmala Sitharaman on Tuesday said that the public issue of the LIC is expected shortly. Others too are in the process for 2022-23, she said. “Towards implementation of the new Public Sector Enterprise policy, the strategic transfer of ownership of Air India has been completed. The strategic partner for NINL (Neelanchal Ispat Nigam Limited) has been selected,” the Minister noted. Commenting on the government’s disinvestment target, Puneet Pal, Head-Fixed Income, PGIM India Mutual Fund said that the target of Rs 65,000 crore for FY23 looks quite reasonable.