For the last few years, the govt of India has been unable to meet its disinvestment target. This year as well, this situation is similar.
Last budget, the govt has set a divestment target of Rs 65,000 crore for the current financial year. However, so far the govt has been able to raise about 31,000 crore which is just around 50% of its target.
Over half the amount raised has come from the IPO of Life Insurance Corporation (LIC), where Rs 21,000 crore was raised after a divestment of 3.5%.
The privatisation of BPCL was also slated for FY23, but it was put on hold due to the volatile crude prices.
In fact, the Department of Investment and Public Asset Management has suggested that dividends from PSUs be considered as divestment collections, as they are revenue resources for the government. Currently, PSU dividends received by the Centre are not considered as disinvestment proceeds.
Source: Mint