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‘Despite Covid, disinvestment broadly on track’

Our Bureau New Delhi | Updated on July 28, 2021

Tuhin Kanta Pandey, Secretary, DIPAM   -  Businessline

Key transactions to be completed this fiscal, says DIPAM Secretary

The Government is striving to complete strategic disinvestment of some Central Public Sector Enterprises (CPSEs), including Air India and BPCL, said the Secretary in the Department of Investment and Public Asset Management (DIPAM) Tuhin Kanta Pandey, here on Wednesday.

“I would certainly say, Air India we are very keen. Despite the problems, we may have some delay because of Covid but broadly disinvestment is on track. Some of the key transactions which we ought to complete in this financial year, for the first time the Finance Minister has mentioned in the Budget speech naming the enterprises. We are striving to conclude the transactions,” he said while addressing an event organised by an industry chamber.

Finance Minister Nirmala Sitharaman had said in her Budget speech: “In spite of Covid-19, we have kept working towards strategic disinvestment.

A number of transactions namely BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others would be completed in 2021-22. Other than IDBI Bank, we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22.”

‘EoIs received’

Pandey said that DIPAM has already received multiple expressions of interest for strategic sale of companies such as Air India and BPCL. “We are striving to complete it this fiscal,” he said while adding that DIPAM is working to set up a Special Purpose Vehicle for monetising land and other surplus assets of CPSEs inline with the Finance Minister’s announcement.

‘Land to be pooled’

Land assets of CPSEs which are to be closed down and other non-core assets of companies under strategic divestment would be pooled and then monetised. This may include those of Scooters India, Hindustan Flourocarbons, Bharat Pumps and Compressors and HMT. In the current fiscal, the government aims to mop up ₹1.75-lakh crore from CPSE disinvestment. Of this, ₹1-lakh crore is to come from selling government stake in public sector banks and financial institutions and ₹75,000 crore from CPSE disinvestment.

Published on July 28, 2021

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