The authorities had invited expressions of curiosity from bidders for its 51% stake in mini-Ratna PSU Pawan Hans, with January 19 because the deadline.
The Finance Ministry has prolonged the bidding deadlines for the strategic disinvestment of Pawan Hans by a month, citing logistical challenges confronted by bidders as a result of COVID-19 pandemic.
This marks one other setback for the federal government’s already dented plans to boost ₹2.1 lakh crore via disinvestment in 2020-21, with nearly ₹14,000 crore raised thus far via minority stake gross sales.
No strategic gross sales have been concluded thus far this 12 months, at the same time as a brand new public sector coverage promised final May to energise privatisation of public sector companies is but to be firmed up. The prolonged timelines for Pawan Hans’ stake sale requires potential bidders to submit bodily copies of the required paperwork by the primary week of March, making it troublesome to anticipate the sale course of to be accomplished this monetary 12 months.
In December 2020, the federal government had invited expressions of curiosity from bidders for its 51% stake in mini-Ratna PSU Pawan Hans, with January 19 because the deadline. The stability 49% stake within the agency is owned by ONGC, and the profitable bidder would get an possibility to purchase out the oil main’s stake on comparable worth and phrases as agreed for the Centre’s stake.
The deadline for evincing curiosity has now been prolonged until February 18 “contemplating the prevailing Covid-19 scenario and consequent logistical challenges confronted by Interested Bidders”, the Department of Investment and Public Asset Management (DIPAM) stated in a notification.
Strategic gross sales of public sector companies like Air India and BPCL are unlikely to conclude this 12 months, neither is the plan to listing the Life Insurance Corporation of India on the bourses more likely to take off by March 31, 2021, as amendments are wanted to the LIC Act of 1956.
The authorities might miss its disinvestment targets for the 12 months by a large margin, however the strain on the exchequer to boost assets to prop up a fledgling financial restoration and meet expectations of upper outlays for healthcare might translate into even stiffer disinvestment targets in 2021-22.
The improve in public spending within the upcoming Budget should be financed to a big extent by garnering disinvestment proceeds and monetising property, Brickwork Ratings stated in its newest financial outlook report launched final week. “The subsequent 12 months will current better alternatives to fast-track strategic disinvestment not merely to boost assets for revival, but in addition to remove the necessity for the federal government’s involvement in non-strategic areas,” it stated.
