Latest News | Govt Striving to Complete Privatisation of CPSEs Listed out in Budget: DIPAM Secy

New Delhi, Jul 28 (PTI) The government is striving to complete privatisation of CPSEs listed out in the Budget, including Air India, BPCL, and BEML, in the current fiscal ending March 2022, DIPAM Secretary Tuhin Kanta Pandey said on Wednesday.

The Department of Investment and Public Asset Management (DIPAM), which manages sale of government equity in public sector enterprises, has already received multiple expressions of interest (EoIs) for strategic sale of these companies.

"I would certainly say Air India we are very keen...despite the problems, we may have some delay because of COVID but broadly disinvestment is on track. Some of the key transactions which we ought to complete in this financial year, for the first time the finance minister has mentioned in the Budget speech naming the enterprises...we are striving to conclude the transactions," Pandey said.

Speaking at a Ficci event, the secretary said BEML, Shipping Corp of India, Neelachal Ispat Nigam, BPCL and Air India are the companies where the disinvestment process is underway. "We are striving to complete it this fiscal," he said.

Pandey further said DIPAM is working to set up a Special Purpose Vehicle (SPV) for monetising land and other surplus assets of CPSEs.

"On asset monetisation of non-core assets...finance minister had announced Special Purpose Vehicle to be formed for doing this.

"We are working on it and trying to convert that announcement into action, which is actually to form a SPV to enable faster monetisation of the land and other surplus asset of the companies," he said.

Land assets of central public sector enterprises (CPSEs) which are to be closed down and other non-core assets of companies under strategic divestment would be pooled and then monetised.

The land assets of CPSEs like Scooters India Ltd, Hindustan Flourocarbons Ltd, Bharat Pumps and Compressors Ltd and HMT-- which are to be closed down -- may form part of the land pool to be sold off by the SPV.

In her Budget 2021-22 speech, Finance Minister Nirmala Sitharaman had said, "Monetising of land can either be by way of direct sale or concession or by similar means. This requires special abilities and for this purpose, I propose to use a Special Purpose Vehicle in the form of a company that would carry out this activity."

In the current fiscal, the government aims to mop up Rs 1.75 lakh crore from CPSE disinvestment.

Of this, Rs 1 lakh crore is to come from selling government stake in public sector banks and financial institutions. Rs 75,000 crore would come as CPSE disinvestment receipts.

In her Budget speech, Sitharaman had said strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, among others, and IPO of LIC would be completed in 2021-22.

Also, the process of privatisation of IDBI Bank is slated to be completed in the current fiscal.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)