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Centre to come out with EoIs for further disinvestments soon

BL Kolkata Bureau | Updated on: Mar 10, 2022

Secretary of DIPAM says the government will likely float EoIs for IDBI Bank, Vizag Steel Plant, Concor, NMDC Iron and Steel plant, and Ferro Scrap Nigam Ltd

The government is likely to come out with expressions of interest (EoI) for disinvestment of IDBI Bank, Vizag Steel Plant, Concor (Container Corporation of India), NMDC Iron and Steel Plant, and Ferro Scrap Nigam Ltd soon.

According to Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), the government — which has successfully concluded divestment process in Air India and Neelachal Ispat Nigam Ltd — has several other transactions in “advanced stages”.

“This (divestment) process has been well tested in these (Air India and Neelachal Ispat) transactions. We have several other transactions in advanced stages — BPCL, BEML, Shipping Corporation of India, Pawan Hans, Projects and Development India Ltd,” he said at a special e-session organised by the Merchants’ Chamber of Commerce and Industry on Thursday.

“EoIs are likely to come up soon for IDBI Bank, Vizag Steel Plant, NMDC Iron and Steel plant (which is going to be demerged from NMDC), and Ferro Scrap Nigam Ltd. This pipeline is set to grow as more units are identified for privatisation,” he said.

In-principal approvals

The Cabinet had in May last year given in-principle approval to IDBI Bank’s strategic disinvestment along with transfer of management control. The central government and LIC together own more than 94 per cent equity of IDBI Bank. At present, LIC has management control with a 49.24 per cent stake while the government holds 45.48 per cent.

The Cabinet Committee on Economic Affairs (CCEA) had also given its in-principle approval for 100 per cent disinvestment of government stake in Rashtriya Ispat Nigam Ltd (RINL), also called Visakhapatnam Steel Plant or Vizag Steel, along with RINL’s stake in its subsidiaries and joint ventures through strategic disinvestment by way of privatisation.

For Concor, the government plans to divest 30.8 per cent of its 54.8 per cent stake and transfer management control.

 The CCEA had, in October 2020, also given approval for the demerger of NMDC Iron and Steel plant from NMDC and disinvestment of the demerged company by selling entire stake of the government to a strategic buyer.

The government has begun the process for the privatisation of Ferro Scrap Nigam, a 100 per cent subsidiary of MSTC, by floating a request for proposals (RfP) for engaging asset valuers for the process.

LIC IPO

Regarding the mega-IPO of LIC, Pandey said that the issue has got the nod from market regulator SEBI and is likely to be brought to the market soon.

“We are watching the market situation. Hopefully, we should be able to bring it out soon,” he said.

Published on March 10, 2022
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