INDIA BUDGET-Govt sets equity sales target at 500 billion rupees for 2024/25

While the equity sales target for next fiscal year, starting April 1, is the lowest in 11 years, if achieved, the receipts would be the highest in five years. India's general elections are expected to be held by May. Outgoing governments typically avoid major policy decisions, such as stake sales, which are opposed by employees and unions.

India aims to garner 500 billion rupees ($6 billion) through equity stake sales in 2024/25 as privatization of state-run companies takes a backseat before general elections this summer.

The government slashed the stake sale target for the current fiscal year to 300 billion rupees from 510 billion rupees as its biggest divestment planned for the year was delayed, budget documents released on Thursday showed. While the equity sales target for next fiscal year, starting April 1, is the lowest in 11 years, if achieved, the receipts would be the highest in five years.

India's general elections are expected to be held by May. Outgoing governments typically avoid major policy decisions, such as stake sales, which are opposed by employees and unions. Prime Minister Narendra Modi's government has met its privatization and divestment targets only twice in the last decade, even though his government's track record on stake sales has been better than that of any previous administration.

Despite announcing a policy in 2020 to privatize state-run firms in sectors from banking and insurance to transport and energy, the government's only notable success was the sale of beleaguered national carrier Air India, while a lack of interest forced it to withdraw others such as Bharat Petroleum Corp . ($1 = 82.9670 Indian rupees)