Rs 1 lakh crore will be raised through disinvestment in the current financial year

New delhi date. 19 October 2020, Monday

For the financial year, the government has disinvested Rs. A target of Rs 2.1 lakh crore has been set. But given various adverse factors, this target is unlikely to be met. Given the disinvestment process that will take place during the second half of the current financial year, only half of this target is likely to be achieved during the year. That is, in the current financial year, Rs. One lakh crore is estimated to be collected.

The government's targets are being disrupted on all fronts in the wake of the Corona epidemic. The government has also allocated Rs. A target of Rs 2.31 lakh crore has been set but during the first half of the current financial year, from April to September, there has been modest progress on this front.

The second half of the current financial year has begun. But disinvestment during the remaining six months is unlikely to achieve this goal. But given the way the government is doing now, only half of the disinvestment targets will be achieved in the current financial year. That is Rs. Experts believe that Rs 1 lakh crore will be raised.

In the second half of the current financial year, the government will sell stakes in BPCL, IDBI Bank, Concor, Shipping Corporation and BEML. Among these companies, BPL and Conquer will be disinvested at a premium to their current market price during the month of November. Apart from this, other companies are also in the process of selling their stakes.

If we look at the main reason behind not achieving this target, LIC's IPO is unlikely to come in the current financial year due to large-scale legal loopholes. Another important point is that the process of privatization of Air India by the government will not lead to any increase in government revenue. The revenue generated through this process will reduce the debt liability of the government.