Government shores up Rs 32,835 crore from disinvestment in FY21

The Government of India has mopped up Rs 32,835 crore from disinvestment in the fiscal year FY21.

The central government has mopped up Rs 32,835 crore from share and buybacks of CPSEs thus exceeding the disinvestment target set in the revised estimate (RE) for FY21.

The realisation is lesser than the record Rs 2.10 lakh crore budgeted originally. In revised estimates the target was scaled down to Rs 32,000 crore as the Covid-19 pandemic led to a delay in big ticket disinvestments.

The Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said the total receipts in 2021-21 stand at Rs 71,857 crore including disinvestment receipts of Rs 32,835 crore and dividend receipts of Rs 39,022 crore.

Pandey tweeted, “Total dividend receipts from CPSEs in FY 2020-21 have touched Rs 39,022 crore, which exceeds the revised estimate (RE) of Rs 34,717 crore, and is more than actual dividend receipts (Rs 35,543 crore) during the previous financial year.”

The government sold its stake via seven offer for sale transactions and has also tendered shares in buyback offerings by a similar number of CPSEs including selling its stake in Tata Communications erstwhile VSNL and has netted Rs 22,973 crore to the government in FY21.

Among other transactions include in RailTel, IRFC and Mazgaon Dock Shipbuilders with IPOs.

For the FY22 fiscal beginning on April 1, the central government has set a disinvestment target of Rs 1.75 lakh crore over five times of FY21 fiscal.

India’s largest insurer LIC’s IPO is also in the pipeline for FY22 and privatisation of IDBI bank is also on the card for FY22 fiscal.

The realisation is lesser than the record Rs 2.10 lakh crore budgeted originally. In revised estimates the target was scaled down to Rs 32,000 crore as the Covid-19 pandemic led to a delay in big ticket disinvestments.

The Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said the total receipts in 2021-21 stand at Rs 71,857 crore including disinvestment receipts of Rs 32,835 crore and dividend receipts of Rs 39,022 crore.

Pandey tweeted, “Total dividend receipts from CPSEs in FY 2020-21 have touched Rs 39,022 crore, which exceeds the revised estimate (RE) of Rs 34,717 crore, and is more than actual dividend receipts (Rs 35,543 crore) during the previous financial year.”

The government sold its stake via seven offer for sale transactions and has also tendered shares in buyback offerings by a similar number of CPSEs including selling its stake in Tata Communications erstwhile VSNL and has netted Rs 22,973 crore to the government in FY21.

Among other transactions include in RailTel, IRFC and Mazgaon Dock Shipbuilders with IPOs.

For the FY22 fiscal beginning on April 1, the central government has set a disinvestment target of Rs 1.75 lakh crore over five times of FY21 fiscal.

India’s largest insurer LIC’s IPO is also in the pipeline for FY22 and privatisation of IDBI bank is also on the card for FY22 fiscal.