New Delhi: Exuding confidence over concluding the ongoing disinvestment transactions before the end of this financial year, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey has said that after a gap of 19 years, India will see five to six PSU privatisations this financial year. He also said that financial bids for the privatisation of as many as six PSUs, including Bharat Petroleum Corporation Ltd (BPCL), BEML Ltd and Shipping Corporation of India (SCI), among others, will be invited by December this year or January 2022.
Speaking at the CII Global Economic Policy Summit 2021 on November 17, Pandey said, "After 19 years, we will see 5-6 privatisations (PSU) this year. BPCL is in the due diligence stage. BEML, Shipping Corp, Pawan Hans, Central Electronics, NINL… financial bids can take place in December-January so that we can close it by this year itself," said Pandey.
Commenting on the government's new public sector policy, Pandey said, "It is a very bold and clear policy by the government and its implementation would require private sector participation." Stressing on the role that the private sector will play in making the new public sector policy a success, Pandey urged them to bid for the PSUs on sale.
"We are moving towards a situation in privatisation, where it is (being followed) not only in policy but also in action," said the top bureaucrat. He added that Prime Minister Narendra Modi's call to streamline and simplify processes would lead to faster conclusion of financial bidding transactions.
The DIPAM Secretary said that the initial public offer (IPO) of Life Insurance Corporation (LIC) is expected to be launched in the January-March quarter of this financial year. "On LIC IPO, we are working very hard. For the capital market, it will be a very big event in the first quarter of 2022," said Pandey. The LIC IPO is crucial for the government's plan to meet the disinvestment target of Rs 1.75 lakh crore.
So far, the Centre has raised Rs 9,330 crore through minority stake sale in PSUs and the sale of SUUTI (Specified Undertaking of Unit Trust of India) stake in Axis Bank. The government has also concluded the sale of national carrier Air India. Pandey said that the Centre aims to complete the handover of Air India by December.
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