December 03, 2024 22:23 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Hours after closing consular office in Tripura, Bangladesh summons Indian envoy in Dhaka | Bangladesh: Court defers bail hearing of Hindu priest Chinmoy Krishna Das for one month | Sambhal incident is BJP's conspiracy: Akhilesh Yadav in Lok Sabha | Mahayuti likely to name Devendra Fadnavis as Maharashtra CM tomorrow | INDIA bloc cracks visible in Parliament as SP and TMC skip Adani protests
DIPAM Secretary explains why Budget FY25 has no fixed disinvestment target
Photo Courtesy: PIB

DIPAM Secretary explains why Budget FY25 has no fixed disinvestment target

| @indiablooms | 02 Feb 2024, 12:24 am

New Delhi: Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Thursday said the government has intentionally not set up a specific disinvestment target for the fiscal year 2024-25, media reports said.

Pandey emphasised that the government's disinvestment strategy should be carefully adjusted, taking into account a balanced approach that also prioritizes the generation of wealth, reported Moneycontrol.

"In one year alone, we have added Rs 25 lakh crore of wealth," Pandey said in the post-Budget press briefing, according to the report.

He made the statement referring to the surge in the market capitalisation of the 61 listed Central Public Sector Enterprises (CPSEs) and 16 public sector banks.

"Compare that to the Rs 4.2 lakh crore of disinvestment that we have done since 2014 and the Rs 4 lakh crore of dividend from CPSEs. That's around Rs 8.5 lakh crore in total. So, if we want to do disinvestment, it has to be done in a calibrated manner and wealth has to be increased too," Pandey was quoted as saying by Moneycontrol.

"That's why the government has not fixed a disinvestment target for 2024-25 as of now," he added.

In the current fiscal, the government has managed to raise Rs 12,504 crore through disinvestment.

"What we have done (in 2024-25) is that under other receipts we have kept asset monetisation and disinvestment… If we get the opportunity, we can even do more (than Rs 50,000 crore)," Pandey said.

He asserted that setting a specific disinvestment target sends a signal to the market, indicating the government's intention to sell some shares at a certain price, thereby influencing market dynamics.

On the government's anticipated dividend receipts, Pandey said that it is a crucial component of non-tax revenue.

In the fiscal year 2024-25, the government anticipates receiving Rs 1.02 lakh crore as dividends from the Reserve Bank of India and public sector banks. The government expects to receive Rs 48,000 crore as dividends from public sector enterprises and other investments.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.