The Central government is hopeful that the stake sales in Air India, BPCL and other identified state-run companies will be completed in the Financial Year 2021-22.
Tuhin Kant Pandey, Secretary in the Department of Investment and Public Asset Management (DIPAM) on Wednesday said that the government aims to complete the privatization of public carrier Air India, state-owned refiner Bharat Petroleum Corporation Limited (BPCL) and other identified companies during the current fiscal year. He was speaking at the annual session of industry body Confederation of Indian Industry (CII),
He also stated that the government has received a significant amount of interest from prospective bidders for Shipping Corporation of India, Pawan Hans, and Neelachal Ispat Nigam Limited.
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The Centre has set a target of Rs 1.75 lakh crore from the privatization of state-owned businesses for the current fiscal year, and Pandey said the process had been substantially affected by the second Covid-19 wave, but was again back on track.
Tuhin further mentioned that the government anticipates Rs 50,000 crore in dividends from public sector firms in the current fiscal year, is working on a Rs 6 trillion asset monetisation strategy, and intends to release plans for GAIL pipelines shortly.
According to him, as stated during the meeting, the disinvestment agenda has been accelerated by the announcement of the new PSE (public sector enterprises) policy, which will be notified on February 4, 2021, and is expected to be an important policy for the next five years, resulting in increased privatization in the economy.
According to Pandey, the country will finally witness privatization after 17 years, since the last time it happened in 2003-04 under the then-NDA administration. He also stated that the government intends to list the state-run insurance behemoth LIC before the end of the year. This year, a mega listing in LIC is planned, which would be the largest of its type in the history of the Indian stock market.
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He said that IDBI Bank's strategic disinvestment has also been approved by the Cabinet. The Container Corporation of India (CONCOR) is anticipated to submit an expression of interest as soon as the land lease policy is finalised.
