Confirmed: Govt Will Sell These 6 PSUs To Private Firms Before March 2022; Bidding Starts
India’s Union government is considering privatization of the five or six companies in the current financial year of 2021-22 which includes company’s like Bharat Petroleum (BPCL), Shipping Corp of India and Pawan Hans, according to the DIPAM Secretary, Tuhin Kanta Pandey.
Privatization Of Five-Six Companies
Basically, DIPAM is the Department of Investment and Public Asset Management which comes under the Finance Ministry.
Further said, that the government is planning to invite bids for privatization by December-January for the above-mentioned firms.
Pandey added that the privatization of BEML and Neelachal Ispat is expected to be completed by 2021-22 while speaking at the Confederation of Indian Industry (CII) Global Economic Policy Summit 2021 on November 17.
DIPAM ‘s Role In Privatization
DIPAM ‘s role is to privatize PSUs or take them public through initial public offerings and shed stake in listed PSUs through offer-for-sales.
This department also keeps a watch on dividends paid and share buybacks by PSUs.
Its role is especially crucial as the government is expecting to meet the ambitious divestment target of Rs 1.75 lakh crore this year.
For the remainder of the year, Pandey’s task is to privatize Bharat Petroleum, among others, and take LIC public as he is already successfully carried out the sale of Air India to Tata Sons.
Increasing Capital Expenditure
“We need to increase capital expenditure in India to make up around 10 percent of the country’s GDP in the next few years,” according to Ajay Seth, Department of Economic Affairs Secretary.
So far, the government is pushing to list the initial public offering (IPO) of Life Insurance Corporation of India (LIC).
Seth further said that the government is working very hard for it and expects to launch it in the last quarter of 2021-22.
According to him, the capital markets are not mature enough to give long-term finance and there is a need to further develop them for long-term financing.
He mentioned that the unorganized sector has lost wealth due to the COVID-19 pandemic.
So, “It will take time to restore lost wealth in the unorganized sector due to COVID-19.”
Apart from that,” the government and the Reserve Bank of India are closely watching credit-off takes by MSME’s. Government is also closely monitoring semiconductor shortage,” he added.