States to get matching amounts from Centre for SPSEs' privatisation

To incentivise state governments for privatising state public sector enterprises (SPSEs), the Centre has promised to provide 100 per cent of the realised amount from such strategic disinvestments in FY23.

However, this will be on a first-come first-serve basis with a cap of Rs 1,000 crore for a state.

The Centre has allocated Rs 5,000 crore for disinvestment of SPSEs and asset monetisation. This is over and above the Rs 1 trillion interest-free capex loans to states for FY23.

In 18 pages of guidelines issued to states in April — which was reviewed by Business Standard — the finance ministry