Privatisation of PSUs back on track: DIPAM Secretary Tuhin Kanta Pandey

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Disinvestment of public sector companies is back on track, after Covid-induced setbacks, and DIPAM is aiming to conclude a host of transactions by March-end, Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said on Wednesday.

Stressing that privatisation of Air India, BPCL, Shipping Corp of India, Pawan Hans, BEML and Neelachal Ispat Nigam Ltd would be completed this year, Pandey said change of ownership and control would give a lot of fillip to the valuations of the stock market listed companies.

“Covid actually hit us very badly… It is much easier to do a market transaction, much more difficult to do a strategic sale where the bidders will actually take control of the company and the due diligence process is extremely rigorous. There were controls on travel, gradually they have been lifted, our disinvestment is back on track,” he said.

Pandey at the virtual CII annual session further noted that “we intend to do Air India privatisation, BPCL privatisation, Shipping Corp of India, Pawan Hans, BEML and Neelachal Ispat Nigam Ltd this year.” He said these companies got sufficient interest from bidders and are now at the due diligence and financial bidding stage.

On strategic disinvestment of Container Corp of India, he said the expression of interest is also expected as soon as the land lease policy is finalised. Besides, the much anticipated initial public offering of Life Insurance Corp of India is expected in the current financial year.

The listing of LIC will be crucial for the government in meeting its disinvestment target of Rs 1.75 lakh crore for 2021-22 (April-March).