As the government intends to complete the divestment latest by July-August, it has asked the bidders to submit their financial bids in next two months for the government’s stake sale in national carrier Air India and Bharat Petroleum Corporation Ltd (BPCL).
By July-August Complete The Divestment Latest : Government
In the financial year 2020-21, Coronavirus and the pandemic situation hit government’s plans to divest its stake in BPCL and Air India. As a revision for FY21, Finance Ministry reduced its divestment target from Rs 2.1 lakh crore earlier to Rs 32,000 crore.
In order to complete due diligence, government may have to relax the time period for bidders while the Department of Investment and Public Asset Management (DIPAM) targets to complete the stake sale by June.
Some bidders for the valuation of the assets bring experts from overseas for before investing or they might want to physically verify plants and equipment to assess their real worth.
For selling its stake in BPCL, government has received a preliminary bid from Vedanta. For Air India, Tata Group has submitted Expression of Interest among others.
Planned Strategic Disinvestments
Through strategic disinvestments a target of Rs 1.75 lakh crore is set by government. The process of disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Limited, among others shall be completed in 2021-22.
Other than IDBI Bank & LIC, Finance Minister also proposed privatization of two public sector banks in FY22.
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