Indian Govt's Privatisation Efforts Fall Short, Raises Rs 16,500 Cr In Stake Sales

Official data reveals that in the fiscal year 2023/24, the Indian government generated Rs 16,500 crore (USD 1.98 billion) through the sale of stakes in approximately 10 state-owned companies. This figure falls short of the government's internal target of Rs 18,000 crore by about 9 per cent.

The ambition of Prime Minister Narendra Modi to privatise state-owned firms has been hindered by the upcoming general elections, set to commence on 19 April. Despite Modi's government achieving its privatisation and minority stake sale target only twice in the past decade, it holds a better track record compared to previous administrations.

For the current financial year, which began on 1 April, the government has deviated from its usual practice by not setting a target for privatisation. However, the shortfall in stake sale receipts has been partially compensated by higher dividends received from state-owned companies.

In the fiscal year 2023/24, the government received dividends amounting to about Rs 63,000 crore, surpassing its target of Rs 50,000 crore, as per government data.