India Budget: Govt sets equity sales target at 500 billion rupees for 2024/25 (updated)

IDBI Bank

01/02/2024 08:18

(Updates to add details, graphic)
       NEW DELHI, Feb 1 (Reuters) - India aims to garner 500
billion rupees ($6 billion) through equity stake sales in
2024/25 as privatization of state-run companies takes a backseat
before general elections this summer.
    The government slashed the stake sale target for the current
fiscal year to 300 billion rupees from 510 billion rupees as its
biggest divestment planned for the year was delayed, budget
documents released on Thursday showed. 
    While the equity sales target for next fiscal year, starting
April 1, is the lowest in 11 years, if achieved, the receipts
would be the highest in five years. 
        India's general elections are expected to be held by
May. Outgoing governments typically avoid major policy
decisions, such as stake sales, which are opposed by employees
and unions.
    
    
    Prime Minister Narendra Modi's government has met its
privatization and divestment targets only twice in the last
decade, even though his government's track record on stake sales
has been better than that of any previous administration.
    Despite announcing a policy in 2020 to privatize state-run
firms in sectors from banking and insurance to transport and
energy, the government's only notable success was the sale of
beleaguered national carrier Air India, while a lack of interest
forced it to withdraw others such as Bharat Petroleum Corp
 BPCL.NS .
    
($1 = 82.9670 Indian rupees)

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 (Reporting by Nikunj Ohri and Jaspreet Kalra; Editing by
Mrigank Dhaniwala and Sonia Cheema)
 ((nikunj.ohri@thomsonreuters.com; +91 90284 60730; Reuters
Messaging: twitter.com/nikunj_ohri))