Completion of the Indian government's stake sale in IDBI Bank might not be on the cards this financial year, according to an official. India is also likely to fall short of its disinvestment target this fiscal, the official added on condition of anonymity.
Together, the government and LIC own 61% stake in IDBI Bank. The latter recently invited bids for asset valuers.
So far, during the current financial year 2024, the Department of Investment and Public Asset Management has garnered Rs 6,949 crore through the offer-for-sale process.
In what is already a slow year for disinvestment proceeds, the government stares at a Rs 51,000-crore target for FY24.
"The aggregate of disinvestment proceeds and non-tax revenues will be close to the budget target," the same official said.
So far, the dividend from the central public sector enterprises has totalled Rs 16,257 crore in FY24, according to government data. Along with disinvestment proceeds, this brings DIPAM receipts till September to Rs 23,207 crore.
Any shortfall in disinvestment proceeds could be matched with healthy bank dividends and the Reserve Bank of India dividend surplus, according to the official.
The government's budget estimate for non-tax revenues stands at Rs 3,01,650 crore. As of August end, the government has collected Rs 2 lakh crore, or 69.5% of this target, hinting at a comfortable run.
ICRA Ltd.'s chief economist, Aditi Nayar, also noted while offering a comment on government finances at the end of August that the higher-than-budgeted dividend surplus transfer of Rs 87,000 crore from the RBI is likely to provide some cushion to meet any undershooting in other revenue streams, including disinvestment or potential overshooting in expenses, relative to respective budgetary estimates, such as the Mahatma Gandhi National Rural Employment Guarantee scheme.
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