India likely to cut disinvestment goal by 40% for FY25: Report

The government will likely revise the target to less than Rs 30,000 crore from the initial Rs 50,000 crore.

Mumbai: India will likely cut its disinvestment and asset monetisation target by 40 per cent for 2024-25 in the federal budget to be presented next month, The Economic Times newspaper reported on Saturday, as planned sales of state-run firms run into a host of setbacks.

The government will likely revise the target to less than Rs 30,000 crore ($3.47 billion) from the initial Rs 50,000 crore, the newspaper said, citing people aware of the deliberations.

The government may set the target at about Rs 45,000 crore to Rs 50,000 crore for the next fiscal year, as it intends to conclude the IDBI Bank transaction and step up its asset monetisation bid, the report said.

The Finance Ministry did not immediately respond to a Reuters' email seeking comment.

The Indian government, which owns 45.48 per cent in IDBI Bank, and state-owned Life Insurance Corp of India which holds 49.24 per cent, together plan to sell 60.7 per cent of the lender. The sale process was first announced in 2022.

Prime Minister Narendra Modi's administration moved from the usual practise of setting a stake sale target in its budget presented last year.

Modi's ambition of privatising state-run firms has taken a back seat due to regulatory hurdles, complex decision-making, political considerations and valuation issues, but his government has delivered more stake sales than any previous administration.

The government has raised 86.25 billion rupees from disinvestments so far in this fiscal year.

The government will continue to reduce its stakes in some entities via the offer-for-sale route, the report added.

($1 = 86.5710 Indian rupees)