Finance Secy highlights divestment plans, says won’t announce in advance as govt wants best value for public companies

The government will not pre-announce the timing of its divestment plans for FY25 to ensure its best value for public companies, said Finance Secretary TV Somanathan, in an exclusive interview with ET NOW, on Wednesday. “If I were trying to do something, I would not want to tell you in advance because I would want to get the best value that I can get,” Somanathan explained regarding the strategic approach to divestment.

The government aims to collect Rs 50,000 crore from disinvestment and asset monetization in the current fiscal year, according to DIPAM Secretary Tuhin Kanta Pandey. Additionally, the government anticipates a total dividend of Rs 56,260 crore from central public sector enterprises (CPSEs), exceeding the Rs 48,000 crore estimated in the interim budget.

The budget also projects a dividend from the RBI, banks, and financial institutions amounting to Rs 2,32,874 crore in FY25, more than double the interim budget estimate of Rs 1.02 lakh crore. This significant increase is attributed to a windfall dividend of Rs 2.11 lakh crore from the RBI.

The budget document outlines an estimated Rs 50,000 crore towards capital receipts, consistent with the interim budget provision. Revised estimates for the last fiscal year are pegged at Rs 30,000 crore, which includes proceeds expected from CPSE disinvestment and asset monetization, according to Pandey.