The government is hopeful of exceeding its disinvestment target of ₹80,000 crore for FY27, with the Department of Investment and Public Asset Management (DIPAM) Secretary saying the momentum built up by the department will continue as market conditions permit. The proposed strategic sale of IDBI Bank is also expected to boost receipts.
“The momentum we have built up in the department will continue,” the Secretary said, adding that the government would sustain its efforts to monetise its holdings. Referring to LIC’s public offering, the Secretary said it was the largest public offer undertaken so far and that the momentum would be sustained.
The Secretary noted that the current financial year had been challenging from a geopolitical perspective, with significant pressure on government finances and India’s balance of payments. The IDBI Bank transaction, the Secretary said, would have a positive impact on both fronts.
“We will continue to do what we have been doing during the year, as market conditions permit. If that leads to exceeding the target, so be it,” the Secretary said.
On PSU Dividends
On the government’s target for dividend receipts from central public sector enterprises (CPSEs), the Secretary said the dividend season was beginning, with companies holding their annual general meetings.
However, geopolitical developments and the difficult situation in the oil sector could lead to a shortfall in dividend flows from oil companies.
The government is looking to bridge the gap through additional revenue streams, including the listing of Coal India subsidiaries and India Infrastructure Finance Company. Special dividends are also expected to contribute to receipts.
“We hope to close the gap by the end of the financial year,” the Secretary said, adding that the government would review the numbers as the situation in the oil sector evolves and companies increasingly integrate across the value chain.
The government expects greater clarity on dividend receipts during the current quarter, when it holds discussions with the companies.
On the distribution of dividends, the Secretary said the approach would be balanced, with 50% of profits earmarked for special dividends and the remaining 50% retained by the companies to meet their internal investment requirements.
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