Interim Budget 2024: Govt likely to retain focus on PSU stake sales in FY25

The government seems likely to maintain its emphasis on disinvestment in public sector units, with the goal of pushing forward outstanding transactions. Insiders suggest that the disinvestment revenue target is likely to stay above Rs 50,000 crore as a way to signal the government's commitment to progressing on disinvestment transactions. For 2023-24, a goal of Rs 51,000 crore was set by the Centre from disinvestment returns, but a deficit is probable. Thus far, it has attained Rs 10,051.73 crore from pure share sale receipts and Rs 43,843.38 crore from dividends from central public sector undertakings, yielding a cumulative Rs 53,895.11 crore in receipts for the Department of Investment and Public Asset Management. The government is considering disinvestment deals that include the strategic sale of the Shipping Corporation of India and Concor, privatizing IDBI Bank, and possibly listing several PSUs. Officials anticipate that the new government will progress with this following the General Elections. However, additional disinvestment in the Life Insurance Corporation of India may not be started in the upcoming fiscal year. The Interim Budget, which will be presented on February 1, may suggest these pending deals are part of the government's broader objectives and the target is expected to reflect this. The final verdict on disinvestment revenues will be made in the comprehensive Budget showcased later in the year. Some revenue shortfalls are expected to be offset by increased non-tax dividend proceeds and strong tax collections, which will also aid in achieving fiscal deficit targets. Meanwhile, an advisor is being sought by DIPAM to manage the Bharat Bond Exchange Traded Fund's Rs 50,000 crore assets. Moreover, due to the lack of interest from pre-selected contenders, plans to sell the Salem Steel Plant, a unit of SAIL, have been cancelled.