Govt may expect lower divestment target for FY24 after a failed attempt in FY23

Struggling this year, the Govt may cut the target for FY24 and make it half of the previous target.

Govt may expect lower divestment target for FY24 after a failed attempt in FY23

New Delhi: After the unsuccessful attempt to meet the divestment target for the current year’s Rs 65,000 crore, the union government may estimate the lower targets for the financial year 2024. The government's projected plan for FY23 was missed. Seeing things more realistic, it can be expected that the future targets may be set between Rs 30,000 to 40,000 crore.

Struggling this year, the Govt may cut the target for FY24 and make it half of the previous target.

Moreover seeing the critical global issues the government holds the divestment which was about to happen in the month of January 2023, which includes the divestment of some fertilisers public sector companies like Rashtriya Chemicals & Fertilisers (RCF) and National Fertilizers (NFL), Brahmaputra Valley Fertilizer Corporation (BVFCL), FCI Aravali Gypsum and Mineral (FAGMIL), Madras Fertilizers (MFL), Fertilizer Corporation India (FCIL), Fertilizers and Chemicals Travancore (FACT), and Hindustan Fertilizer Corporation (HFCL).

The govt currently stopping its work on these PSUs' divestment to ramp up local production to reduce dependence on imports, according to the sources. This pushback also comes up because of the fertiliser consumption which has increased.

The government divested Rs 31,106.4 crore in FY 23 states the data given by the Department of Investment and Public Asset Management (DIPAM).

Last year Finance Minister Smt. Nirmala Sitharaman announced privatisation of all state-run companies expecting a few in defence and telecommunications.

The strategic stake sales in PSUs like BPCL, BEML, Container Corporation of India, and Shipping Corporation of India may ramp up the current target for FY23.