RBI’s record dividend will not require the government to make big disinvestments: Report

Mumbai. The Reserve Bank of India’s (RBI) record dividend payment of Rs 2.1 lakh crore to the government will limit the need for large-scale disinvestment. Domestic rating agency Care Ratings said this on Thursday. It said that the new government may keep the estimate of receipts from disinvestment at Rs 50,000. This is equal to the interim budget. It said, “With a record dividend from the RBI, the fiscal position of the central government remains satisfactory. This may limit the need to go ahead with large-scale disinvestment.

It said that if there is a shortfall in resource mobilization, the government will give priority to monetizing the assets. The rating agency said that the share sale in Shipping Corporation of India (SCI) is expected to be completed during the current financial year. This will make it easier for the government to achieve the target of FY 2024-24. According to the report, “After the merger of the land assets of Shipping Corporation of India, its possible disinvestment is likely to happen in FY 2024-25.

However, it is necessary for the market conditions to remain favourable. If the government sells its entire stake in SCI, it can get Rs 12,500-22,500 crore. The rating agency said that other companies in which disinvestment is possible include Concor and Pawan Hans. However, the process is moving at a slow pace in these cases. The government has raised Rs 5.2 lakh crore from disinvestment in the last 10 years. According to the report, the government can raise Rs 11.5 lakh crore by selling stake in government-owned companies and it can achieve this without bringing down its stake to less than 51 percent.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.



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