Rupee coins.
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India is likely to slash its disinvestment and asset monetization targets by 40% in the federal budget presented next month as plans for the sale of state-owned enterprises hit a series of setbacks, the Economic Times reported on Saturday.
The government may revise the target to less than 300 billion rupees ($3.47 billion) from the original 500 billion rupees, the newspaper said, citing people familiar with the matter.
The report said the government is likely to set a target of around Rs 45,000-50,000 crore for the next fiscal as it looks to complete the IDBI Bank deal and ramp up efforts to monetize assets.
The Treasury Department did not immediately respond to an email from Reuters seeking comment.
The Indian government, which holds 45.48% stake in IDBI Bank, and state-owned Life Insurance Corporation of India, which holds 49.24% stake, jointly plan to sell 60.7% stake in the bank. The sale process was first announced in 2022.
Prime Minister Narendra Modi’s government changed its practice of setting a target for stake sales in the budget presented last year.
Modi’s ambitions to privatize state companies have taken a backseat due to regulatory hurdles, complex decision-making, political considerations and valuation concerns, but his government has sold more shares than any previous administration.
The government has raised Rs 8,625 crore through disinvestment so far this fiscal year.
The government will continue to reduce its stake in some entities through tender offers, the report added.
