Government Earns Rs 8,625 Crore Through Disinvestment in FY 24-25

The Indian government has garnered Rs 8,625 crore through minority stake sales in fiscal year 2024-25, as disclosed by MoS Finance, Pankaj Chaudhary, in Lok Sabha. The government clarified that there are no fixed targets for disinvestment, shifting focus to strategic economic sectors for potential private investment.

In a written reply to the Lok Sabha on Monday, Minister of State for Finance Pankaj Chaudhary announced that the government has collected Rs 8,625 crore through minority stake disinvestments in the financial year 2024-25. The information was disclosed when the government was pressed to provide details regarding disinvestment goals over the past five years.

The minister noted that as of fiscal year 2023-24, setting specific disinvestment targets has been phased out. For the ongoing fiscal year 2024-25, no targets or estimates for disinvestment revenues have been established, the minister confirmed.

Strategic disinvestment, which involves selling a significant portion or entirety of government equity in Central Public Sector Enterprises (CPSEs) while transferring management control, remains a notable policy. This process extends to the privatization of CPSEs under conditions that favor private strategic buyers, although profitability is not considered a key factor in these transactions.

The government's disinvestment policy emphasizes exiting sectors where competitive markets function effectively, allowing private investors to unlock greater economic potential via capital infusion, technological upgrades, and enhanced management efficiencies.

Execution of disinvestment is ongoing, contingent upon market dynamics, economic conditions, geopolitical scenarios, investor interests, and administrative feasibility. The government has granted strategic disinvestment 'in-principle' approval in 36 cases involving Public Sector Enterprises (PSEs) since 2016, marking a pivotal step in redefining its economic strategy.

(With inputs from agencies.)