The Indian government has set a disinvestment target of Rs 47000 crore for the fiscal year 2026, as per the latest budget documents. However, the target for FY25 has been revised downward, with proceeds now estimated at Rs 33000 crore, significantly lower than the initial estimate of Rs 50000 crore.
Delay in Strategic Disinvestments
The strategic disinvestment of IDBI Bank is progressing but is now expected to extend into FY26 due to pending regulatory approvals for financial bidders. Similarly, stake sales in BEML, Shipping Corporation of India, HLL Lifecare Ltd, and Project & Development India Ltd are facing delays. These slowdowns have impacted the overall disinvestment proceeds for the current fiscal year.
Higher Revenue from Public Sector Dividends
Despite the disinvestment challenges, the government is expecting higher revenue from public sector dividends. The budget estimates Rs 69000 crore in dividends for FY26, surpassing the FY25 budget estimate of Rs 56260 crore and the revised estimate of Rs 55000 crore. The new projection is also higher than the Rs 65381.65 crore collected in FY24.
