Speaking at the CII Global Economic Policy Summit 2021, the Secretary said the initial public offering of Life Insurance Corporation (LIC) is expected in the January-March quarter of this fiscal.Â
The government is planning to invite financial bids for privatising six CPSEs, including BPCL, BEML and Shipping Corp, by January, a top government official said. Tuhin Kanta Pandey, Secretary in the Department of Investment and Public Asset Management (DIPAM), also invited private players to bid for the CPSEs which are up for privatisation, along with transfer of management control.Â
After 19 years, there will be 5-6 privatisation this year. BPCL is in due diligence stage. â€œBEML, Shipping Corp, Pawan Hans, Central Electronics, NINLâ€¦ financial bids can take place in December-January, so that we can close it by this year itself,â€ Pandey said. Speaking at the CII Global Economic Policy Summit 2021, the Secretary said the initial public offering of Life Insurance Corporation (LIC) is expected in the January-March quarter of this fiscal.Â
â€œOn LIC IPO we are are working very hard. For capital market it will be a very big event in the first quarter of 2022,â€ Pandey said.Â On Air India, he said that the government aims to complete national carrier by December.
On Air India, he said that the government aims to complete national carrier by December.
The listing of LIC will be crucial for the government in meeting its disinvestment target of Rs 1.75 lakh crore for 2021-22 (April-March). So far this financial year, Rs 9,330 crore has been mopped up through minority stake sales in PSU and the sale of SUUTI (Specified Undertaking of the Unit Trust of India) stake in Axis Bank.
Â Last month, the government had accepted an offer by Talace Pvt Ltd, a unit of the holding company of the salt-to-software conglomerate, to pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline’s debt. He said post of the experience of Air India sale going forward the privatisation of CPSEs can be accomplished faster.Â
Cooperation from private sector is also required. They too have a role to play so that they bid for the CPSEs which are on sale, he said. â€œWe are moving towards a situation in privatisation where it is not only in policy but also in action,â€ said Pandey.Â
Â Shipping Corporation of India also announced that the board of directors of Shipping Corporation of India Land and Assets in its meeting held on 16 November 2021, has considered and approved the Scheme of Arrangement for Demerger of ‘Non-Core Assets’ between Shipping Corporation of India (Demerged Company) and Shipping Corporation of India Land and Assets (Resulting Company).
â€œWe are moving towards a situation in privatisation where it is not only in policy but also in action,â€ said Pandey.Â