MUMBAI (Reuters)

India is expected to reduce its disinvestment and asset monetisation target by 40% for the 2024-25 federal budget, according to The Economic Times. The target may drop from 500 billion rupees ($3.47 billion) to under 300 billion rupees due to various setbacks in the planned sales of state-run firms.

The revised target could range between 450 billion to 500 billion rupees, as the government aims to complete the IDBI Bank sale and enhance its asset monetisation efforts.

The Finance Ministry has not yet commented on the report.

The Indian government has a 45.48% stake in IDBI Bank and plans to sell 60.7% of the lender, with plans for the sale first announced in 2022.

Despite Prime Minister Narendra Modi’s intentions for privatization, the government has faced regulatory hurdles and complex decision-making processes. Nevertheless, it has achieved more stake sales than previous administrations, raising 86.25 billion rupees from disinvestments this fiscal year. The government is also expected to continue reducing stakes via the offer-for-sale route.

> ($1 = 86.5710 Indian rupees)