The disinvestment target will be bigger in FY 2024 as well

- Govt ramps up for divestment of Hindustan Zinc, IDBI Bank, Concor and Shipping Corporation

In the current financial year 2023, the government may not achieve the disinvestment target. However, this reduction is likely to be insignificant. The government expects to sell the rest of Hindustan Zinc in the current financial year. According to the informants, the disinvestment target may be elevated in the budget estimate of 24. Because there are plans to sell some big properties. In the current financial year Rs. 65,000 crore has been targeted for disinvestment and the government has so far invested Rs. 24,544 crore has been collected. The stake sale of Aingham Bank, Container Corporation of India (CONCOR) and Shipping Corporation of India are among the key privatization plans.

The government is unlikely to achieve the disinvestment target in the current financial year 2023. However, this decrease is expected to be insignificant. The government expects to sell the rest of Hindustan Zinc in the current financial year at a cost of around Rs. 35,000 crore will be.

The disinvestment target in the FY24 budget estimate may remain elevated as some major asset sales are planned and expected to be completed next year.

In the current financial year Rs. A disinvestment target of Rs 65,000 crore has been set. And the government has so far spent Rs. 24,544 crore has been collected. An internal assessment on the disinvestment process and a meeting on the outlook for the next financial year is scheduled to begin next week. High-value disinvestments will be significant in the budget estimates for the next financial year 2024, which are proposed to be disinvested and are expected to be disinvested next year.

The target sale of the asset will depend on the ongoing progress of the process and market conditions. Stake sale of IDBI Bank, Container Corporation of India and Shipping Corporation of India are among the major privatization plans.

Regulatory compliance is critical in strategic sector sales, which take time. The stake sale of Hindustan Zinc will be completed in the current financial year. Government's share at current market rate is Rs. 35,000 crores.

The government hopes that it will be able to sell the IDBI stake in Kharu 24 through a two-stage process in which potential bidders will have to meet the Reserve Bank of India's fit and proper criteria and then submit a financial bid.

In October, the central government had invited initial bids to sell its 60.72 per cent stake in IDBI Bank. And they were asked to submit bids by December 15. The Department of Investment and Public Asset Management is currently handling the sale of shares of all public enterprises, which will be in a position to attract financial bids by the end of March.

Usually the process of selling shares takes at least 9 months. So this deal is expected to be done in 24th. The sale of IDBI's stake to the government raised Rs. 60,000 crore is expected to be received.

Another major sale is the Concours, for which road shows are about to begin and bids are expected to be invited in a month or two. However, the deal is unlikely to be finalized this financial year as clarification on the land lease policy is awaited. Besides, the sale of the shipping corporation is also likely to be completed next year as it is in the final stages of disinvestment.