The Centre has not accounted for the proceeds from the proposed initial public offer IPO) of state-run Life Insurance Corporation (LIC) in its Revised Estimates for the Budget, accordign to a report.

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While the aim is to complete the listing in the current fiscal year, the process may spill over to the the first quarter of the next fiscal year, the Economic Times reported citing officials. If the listing is finished within this fiscal year, it can be reflected in the actuals with the year's final accounts, they said.

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The Department of Investment and Public Asset Management (DIPAM) said recently that the plan for the LIC IPO in the fourth quarter of FY22 is on track, according to the report.

The report also citied an official from the finance ministry as saying that it would be a mistake to conclude that the LIC IPO will not happen. However, considering the scale of the proposed IPO and the stringent deadline, it may extend beyond March 31, the official said.

Market regulator SEBI and merchandise banks appointed for the proposed LIC IPO are working in collaboration with the government's finance department, according to the report.

The Centre palns to garner Rs 1.75 lakh crore from disinvestment in public sector firms and financial institutions for the current fiscal year. It will be diluting its equity in two public sector banks and one insurance company. Out of this, it has only managed to raise less than Rs 10,000 crore including the Air India divestment.

Last year, the government was only able to raise Rs 32,000 crore from divestments against a target of Rs 2.1 lakh crore last year on account of the second wave of the COVID-19 pandemic.

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