Govt set to miss target for divestment in 2023-24 too – Times of India

Govt set to miss target for divestment in 2023-24 too - Times of India

New Delhi: The The center Once again it is poised to miss its target of privatization of state-owned enterprises in the current fiscal year as the process has almost stalled, and with general elections on the horizon, the will to make progress on this key policy issue is limited. will
Over the past year or so, the process has faced several hurdles, including bureaucratic laziness, which has hampered several large public sector enterprises, including privatization. IDBI Bank.
Department of Investment and Public Asset Management (DIPAM) had termed 2023-24 as a year of consolidation and emphasized that it would look to sell some big-ticket items, such as IDBI Bank, logistics firm Concor, BEML, Shipping Corporation of India (SCI). There has been no move on proposed stake sales in two state-owned banks and an insurance company, though a government think tank Niti Aayog The Central Bank of India submitted its report about two years ago recommending Indian Overseas Bank For privatization
The government had also scrapped the privatization of state-run helicopter services provider Pawan Hans and disqualified the winning consortium led by Star 9 Mobility due to several legal cases. It was after much effort that the center decided to sell the company.
DIPAM has largely depended on small transactions in the stock market. It has so far raised Rs 10,050 crore from disinvestment out of a target of Rs 51,000 crore and has received a dividend of Rs 40,017 crore so far this year.
A major public sector policy, announced with much fanfare, aimed at giving a greater role to the private sector has also been a non-starter. In fact, DIPAM officials say “not much is happening” and they are waiting for the new government to take over next year to give the process a new lease of life.
DIPAM says the disinvestment process should not be tied to a specific revenue target and should instead focus on the quality of transactions.
With direct tax and GST collections on the rise, the focus on privatization has been less intense, always a political hot potato.

Business news,Niti Aayog,Indian Overseas Bank,IDBI Bank,DIPAM,The center,Central Bank of India,BEML

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