Key Points
The Indian government may face a disinvestment shortfall in FY24 due to potential delays in the strategic sale of IDBI Bank, possibly spilling into FY25..
While surplus dividends from Central Public Sector Enterprises (CPSEs) might not fully compensate for the anticipated shortfall, the government is considering revising its combined disinvestment and dividend target of Rs 94,000 crore...
Unlike in the last fiscal, surplus dividend by Central Public Sector Enterprises (CPSEs) may not entirely make up for an expected steep shortfall in the governments disinvestment proceeds in FY24 from the budgeted Rs 51,000 crore, now that the strategic sale of IDBI Bank could spill over to FY25, a senior official said...
This could prompt the government to trim its combined disinvestment and dividend target of Rs 94,000 crore in the revised estimate for FY24, he told ET...
However, this time around, the expectations of large surplus dividends by large oil public sector undertakings (PSUs), which typically account for a significant chunk of such non-tax revenue, remain uncertain, given the volatility in global crude oil prices..
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