The government expects to complete the strategic sale of IDBI Bank in the next financial year, a senior official said.

In an interview to PTI TV, the Department of Investment and Public Asset Management (Dipam) secretary Tuhin Kanta Pandey said the process of privatisation of IDBI Bank is on and once the regulator clearance is obtained, financial bids will be invited.

Asked if the strategic sale would be completed in the next fiscal, Pandey said “Yes, of course”.

The government along with LIC is selling nearly a 61 per cent stake in IDBI Bank and had in October 2022, invited bids from buyers.

In January 2023, Dipam said it had received multiple Expressions of Interest (EoI) for buying a stake in IDBI Bank.

The bidders who have shown interest through EoI have to get two sets of clearances — one from the home ministry for security clearance and the other from the Reserve Bank of India (RBI) for meeting the ‘‘fit and proper’’ criteria.

The central government and Central Public Sector Enterprises are estimated to monetise assets worth Rs 1.50 lakh crore in the current fiscal, a tad lower than the targeted Rs 1.75 lakh crore, Pandey said.

Under the National Monetisation Pipeline, the aggregate monetisation potential of the central government's brownfield infrastructure assets has been estimated at Rs 6 lakh crore over a four-year period, from 2021-22 to 2024-25.

Pandey said about Rs 1.75 lakh crore was the target for asset monetisation this year and "we are going to achieve something like Rs 1.50 lakh crore through monetisation".

Pandey said monetisation is going on through infrastructure investment trust (InvITs), Toll Operate Transfer (TOT) in mining, road and power sector and is beginning to happen in the petroleum sector.

"The asset monetisation proceeds do not visibly appear in the budget... to the extent NHAI does it and the receipts are with the government that is only reflected in the budget," Pandey said in most cases the proceeds accrues to the enterprise and not to the government.

Asset monetisation, based on the philosophy of creation through monetisation, is aimed at tapping private sector investment for new infrastructure creation. It also creates employment opportunities, thereby enabling high economic growth and integrating the rural and semi-urban areas for overall public welfare. PTI