New Delhi: The government’s privatization plan is again facing hurdles with the latest restrictions likely to slow down the sales process to contain the spread of the new Covid variant, which is expected to raise Rs 1.75 lakh crore in the current fiscal. It becomes difficult to achieve the target.
Department of Investment and Public Asset Management (pump), which is mandated to conduct the government’s privatization program, has successfully carried out large-scale privatization Air India And several other transactions are in an advanced stage of completion.
But the third wave of Covid threatens to unveil DIPAM’s plans for all restrictions for now, making physical meetings difficult. In fact, the first two waves had an impact on the asset selling program and caused delays and missed targets. While DIPAM had switched to virtual meetings to work on some transactions, the pandemic-induced restrictions took effect. The third wave, which is currently underway, is expected to derail plans for any physical meetings with potential investors and executives who rely on virtual mode to work on pending transactions. Officials may also be reluctant to travel omicron Wave.
Efforts to elicit feedback from DIPAM on the progress of asset sale did not elicit any response.
So far this year, the Center has raised Rs 9,330 crore from disinvestment in public sector companies and Rs 35,117 crore from dividend receipts, which is well below the overall target. With almost three months left in the current financial year, reaching the target seems a difficult task.
After the successful privatization of Air India, DIPAM devised a plan to liquidate the sale of BEML, Shipping Corporation of India And Pawan Hans, Process of Privatization of Oil Marketing Company BPCL, IDBI Bank And a general insurer is likely to spread over the next year.
Department of Investment and Public Asset Management (pump), which is mandated to conduct the government’s privatization program, has successfully carried out large-scale privatization Air India And several other transactions are in an advanced stage of completion.
But the third wave of Covid threatens to unveil DIPAM’s plans for all restrictions for now, making physical meetings difficult. In fact, the first two waves had an impact on the asset selling program and caused delays and missed targets. While DIPAM had switched to virtual meetings to work on some transactions, the pandemic-induced restrictions took effect. The third wave, which is currently underway, is expected to derail plans for any physical meetings with potential investors and executives who rely on virtual mode to work on pending transactions. Officials may also be reluctant to travel omicron Wave.
Efforts to elicit feedback from DIPAM on the progress of asset sale did not elicit any response.
So far this year, the Center has raised Rs 9,330 crore from disinvestment in public sector companies and Rs 35,117 crore from dividend receipts, which is well below the overall target. With almost three months left in the current financial year, reaching the target seems a difficult task.
After the successful privatization of Air India, DIPAM devised a plan to liquidate the sale of BEML, Shipping Corporation of India And Pawan Hans, Process of Privatization of Oil Marketing Company BPCL, IDBI Bank And a general insurer is likely to spread over the next year.
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