MUMBAI (Reuters) – India may cut its disinvestment and asset monetization target by 40% for 2024-25 in the federal budget to be presented next month, The Economic Times newspaper reported on Saturday. , as the planned sale of state-run companies is underway. a host of failures.

The government is likely to change the target to less than 300 billion rupees ($3.47 billion) from an initial 500 billion rupees, the newspaper said, citing people familiar with the deliberations.

The government may set a target of around 450 billion rupees to 500 billion rupees for the next financial year, as it intends to end the IDBI Bank (NS:) transaction and raising its bid on asset monetization, the report said.

The Finance Ministry did not immediately respond to a Reuters email seeking comment.

The government of India, which owns 45.48% of IDBI Bank, and is state-owned Life Insurance (NS:) Corp of India which holds 49.24%, plans to sell 60.7% to the lender. The sale process was first announced in 2022.

Prime Minister Narendra Modi’s administration has moved away from the usual practice of setting a stake sale target in the budget presented last year.

Modi’s ambition to privatize state-run companies has been hampered by regulatory hurdles, complex decision-making, political considerations and valuation issues, but his government has delivered more stake sales than any previous one. administration.

The government has raised 86.25 billion rupees from disinvestments so far this fiscal year.

The government will continue to reduce its stake in some entities through the offer-for-sale route, the report added.

($1 = 86.5710 Indian rupees)