Govt achieves 78% of FY27 disinvestment, asset monetisation target in 5 months
The Indian government has reached 78% of its fiscal year disinvestment and asset monetization target within the first five months. Major contributions came from stake sales in LIC, Coal India, and NHPC, as the government seeks to manage its fiscal deficit.
Why it matters
Meeting these financial targets is crucial for the government to manage its budget and control the fiscal deficit amid rising import costs.
The government has achieved about 78% of its FY27 budgeted target of Rs 80,000 crore for disinvestment and asset monetisation within the first five months of the financial year.The government has raised Rs 55,757 crore so far through minority stake sales in nine public sector undertakings, strategic sale of Indian Medicines Pharmaceuticals Corporation Ltd and remittances from SUUTI.In addition, Rs 6,367 crore has been raised through asset monetisation via InvITs.Taken together, capital receipts from disinvestment and asset monetisation stand at Rs 62,124 crore, or around 78% of the full-year Budget target.LIC stake sale contributes more than halfMore than half of the disinvestment proceeds came from the government's 6.5% stake sale in Life Insurance Corporation of India (LIC), which fetched Rs 31,515 crore.A 2% stake sale in Coal India raised around Rs 5,542 crore, while a 6.01% stake dilution in NHPC brought in Rs 4,357 crore.Earlier this week, the government sold…
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