Mint Explainer: What are the government's divestment plans for FY24?
₹51,000 crore from stake sales in state-run companies. In FY24, the government plans to privatise a host of companies such as Shipping Corporation of India, NMDC Steel, BEML, HLL Lifecare, Container Corporation of India and Vizag Steel. The government also plans to divest its holdings in IDBI Bank in the current fiscal year.
Strategic divestment transactions will have to deal with a host of issues including resolving land titles, lease and land issues with state governments and local bodies, disposal of non-core assets, and address concerns of labour unions, etc. Some of these could prove to be stumbling blocks for the divestment process. The Central government hasn't met its divestment target since 2018-19.
During FY19, the government achieved divestments to the tune of ₹84,972 crore against a target of ₹80,000 crore. However, since then the annual divestment target hasn't been met. During FY23, the government realised divestment proceeds of ₹35,294 crore, against a target of ₹50,000 crore.
In FY23, the government successfully sold its entire stake in national carrier Air India. It also carried out a 3.5% stake sale in LIC. Besides, the government has sold its residual stake in Paradeep Phosphate, IPCL, and Tata Communications.
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