In our CNBC-TV18 special segment ‘Budget Countdown’, Former Finance Secretary SC Garg and Rajeev R Shah, MD and CEO, RBSA Advisors discuss the key expectations from the Union Budget with respect to divestment.

Garg believes that the government’s privatisation agenda seems to have hit a wall. “Privatisation of banks including IDBI, BPCL others didn't take off and if we into the reasons why they did not take off, will probably tell you why in 22-23 also things might be difficult. Unless those problems are solved, it would not yield in the next year as well. So I am not very optimistic about a strong divestment target or achievement in 22-23.

On divestment target, Shah said, “FY22 I would say LIC IPO is very much imminent and that for garner at least Rs 50 to 60,000 crore depending on what estimate that we look at. Each of these strategic disinvestments are quite complex, and that takes a little time. My sense of FY22 would be at least 65,000 crore given LIC IPO, and we believe it would be a great success.”

For full interview, watch accompanying video...

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