Privatisation of 5-6 state-run companies likely in financial year
Financial bids expected in January for BEML, SCI, Pawan Hans, Central Electronics, Neelachal Ispat
The government is optimistic of privatising 5-6 central PSUs in the current financial year, Tuhin Kanta Pandey, secretary in the department of investment and public asset management (Dipam) has said.
Financial bids can take place for Bharat Earth Movers, Shipping Corporation of India, Pawan Hans, Central Electronics, Neelachal Ispat Nigam in January and the transactions could be completed before March-end, the Times of India quoted Pandey as saying in a report.
Air India transfer to Tatas in December
The government is also confident of completing Air India privatisation by December. The report quoted Pandey as saying that after a gap of 19 years India could possibly see 5-6 privatisations this year. BPCL is also in the due diligence stage, he added.
The privatisation of the debt-ridden airline has been on the anvil for some time now. After repeated attempts over a period of time, the government last month succeeded in selling Air India to Tata group. The Rs 18,000-crore deal is for buying the government stake in Air India, and the airline’s stake in Air India Express Ltd (AIXL) and Air India SATS Airport Services Pvt Ltd (AISATS). The deal, however, excludes Air India’s iconic buildings and land bank.
Pandey in quoted in the report as saying that the government’s entire attention is on how to transfer Air India to Tatas as soon as possible and the timeline set is December. All the approvals have already been done.
IPO of LIC
He also said the Initial Public Offer (IPO) of LIC could happen in the fourth quarter of the current financial year. State-owned LIC is a big financial institution that has “remained so far away from the markets.” Its listing will be a very important event for the capital markets, he said.
Ajay Seth, secretary in the department of economic affairs, (DEA) said economic growth must be driven by a virtuous cycle of private investment, with the private sector playing a larger economic role and the government acting as a facilitator.
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