IDBI, SCI stake sales to fetch over Rs 40 thousand crore

The Indian government is facing hurdles in achieving its disinvestment target of Rs 51,000 crore for the fiscal year 2023-2024 (FY24).

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While it plans to complete strategic sales of Shipping Corporation of India (SCI) and IDBI Bank, along with a host of offers for sale (OFS), the receipts are still expected to fall short of the budgeted target.

A senior government official, speaking on the condition of anonymity, revealed that the Finance Ministry aims to generate at least Rs 40,000 crore through disinvestment this year. However, with only the strategic sales of SCI and IDBI Bank likely to be completed, the government is still far from its target. In the current fiscal year, the government has earned Rs 4,235 crore through offers for sale, with the Coal India OFS accounting for Rs 4,185 crore.

The strategic sale of IDBI Bank and SCI are expected to contribute significantly to the government’s disinvestment receipts, with IDBI Bank likely to generate Rs 15,000-16,000 crore and SCI’s strategic sale estimated at around Rs 3,000 crore. Nevertheless, this falls short of the overall target by a considerable margin.