New Delhi: The government is trying to complete the privatization of Budget-listed Central Public Sector Enterprises (CPSEs), including Air India, BPCL and BEML, in the current financial year ending March 2022. Deepam Secretary Tuhin Kanta Pandey said on Wednesday.
The Department of Investment and Public Asset Management (DIPAM), which manages the sale of government equity in public sector enterprises, has already received several letters of interest (EoIs) for the strategic sale of these companies.
“I would definitely say Air India we are very keen… notwithstanding the problems, we may see some delay due to COVID but broadly the disinvestment is on track. Some of the major transactions that we should complete this financial year , for the first time the Finance Minister has mentioned the name of the enterprises in the budget speech … We are trying to close the transaction.” Pandey Said.
Speaking at an event of FICCI, the Secretary said that BEML, Shipping Corp of IndiaNeelachal Ispat Nigam, BPCL and Air India are the companies where the disinvestment process is going on. “We are trying to complete it in the current financial year,” he said.
Pandey further said that DIPAM is working to establish a special purpose vehicle (SPV) for monetization of land and other surplus assets of CPSEs.
“On asset monetization of non-core assets… the finance minister had announced the creation of a special purpose vehicle to do so.
“We are working on it and trying to convert that announcement into action, which is actually to create an SPV so that companies can monetize land and other surplus assets faster,” he said.
Land assets of Central Public Sector Enterprises (CPSEs) that are to be closed and other non-core assets of companies under strategic disinvestment will be pooled and then monetised.
Land assets of CPSEs such as Scooters India Ltd., Hindustan Fluorocarbons Ltd., Bharat Pumps and Compressors Ltd. and HMT – which are to be closed – could be part of the land pool to be sold by the SPV.
In her Budget 2021-22 speech, Finance Minister Nirmala Sitharaman had said, “Monetization of land can be done either through direct sale or concession or similar. This requires special qualifications and for this purpose , I propose to use a specific purpose vehicle as a company that will carry out this activity.”
In the current financial year, the government aims to raise Rs 1.75 lakh crore from disinvestment of CPSEs.
Of this, Rs 1 lakh crore is to come from the sale of government stake in public sector banks and financial institutions. 75,000 crore will come as CPSE disinvestment proceeds.
In her budget speech, Sitharaman had said that the strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan HansThe IPO of Neelachal Ispat Nigam Limited, among others, and LIC will be completed in 2021-22.
Along with this, the process of privatization of IDBI Bank is planned to be completed in the current financial year.
The Department of Investment and Public Asset Management (DIPAM), which manages the sale of government equity in public sector enterprises, has already received several letters of interest (EoIs) for the strategic sale of these companies.
“I would definitely say Air India we are very keen… notwithstanding the problems, we may see some delay due to COVID but broadly the disinvestment is on track. Some of the major transactions that we should complete this financial year , for the first time the Finance Minister has mentioned the name of the enterprises in the budget speech … We are trying to close the transaction.” Pandey Said.
Speaking at an event of FICCI, the Secretary said that BEML, Shipping Corp of IndiaNeelachal Ispat Nigam, BPCL and Air India are the companies where the disinvestment process is going on. “We are trying to complete it in the current financial year,” he said.
Pandey further said that DIPAM is working to establish a special purpose vehicle (SPV) for monetization of land and other surplus assets of CPSEs.
“On asset monetization of non-core assets… the finance minister had announced the creation of a special purpose vehicle to do so.
“We are working on it and trying to convert that announcement into action, which is actually to create an SPV so that companies can monetize land and other surplus assets faster,” he said.
Land assets of Central Public Sector Enterprises (CPSEs) that are to be closed and other non-core assets of companies under strategic disinvestment will be pooled and then monetised.
Land assets of CPSEs such as Scooters India Ltd., Hindustan Fluorocarbons Ltd., Bharat Pumps and Compressors Ltd. and HMT – which are to be closed – could be part of the land pool to be sold by the SPV.
In her Budget 2021-22 speech, Finance Minister Nirmala Sitharaman had said, “Monetization of land can be done either through direct sale or concession or similar. This requires special qualifications and for this purpose , I propose to use a specific purpose vehicle as a company that will carry out this activity.”
In the current financial year, the government aims to raise Rs 1.75 lakh crore from disinvestment of CPSEs.
Of this, Rs 1 lakh crore is to come from the sale of government stake in public sector banks and financial institutions. 75,000 crore will come as CPSE disinvestment proceeds.
In her budget speech, Sitharaman had said that the strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan HansThe IPO of Neelachal Ispat Nigam Limited, among others, and LIC will be completed in 2021-22.
Along with this, the process of privatization of IDBI Bank is planned to be completed in the current financial year.
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