The government has been reviewing its list of public sector companies marked for privatisation, listing and closure, with the Prime Minister’s Office involved in the exercise.
Over the past few months, ministries including heavy industries, fertilisers and housing have pushed for changes to the list. Some ministries have already succeeded in getting companies such as BPCL and Shipping Corporation of India removed from the original sell-off plan. However, officials told TOI that there is little scope for further changes.
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Several government departments have also used inter-ministerial meetings to seek a review of the strategic sale plans. As per the report, officials said some ministries have repeatedly approached NITI Aayog and other agencies with suggestions to reconsider the list.
The Centre, however, has sent a clear message that ministries need to work together to advance strategic sales. The push comes as the government seeks to increase disinvestment receipts and demonstrate its commitment to the privatisation programme.
The strategic sale process has faced delays and uncertainty over the years. Despite the government’s disinvestment policy, there was no centralised list of companies being pursued for privatisation for a long period. Several names also dropped out of the process, including BEML and Shipping Corporation of India.At present, IDBI Bank is the only major entity being actively pursued for strategic sale. Fairfax, owned by Prem Watsa, and Emirates NBD are the two bidders in the race. Both already have investments in Indian banks — Fairfax owns Catholic Syrian Bank, while Emirates NBD has a stake in RBL Bank.
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The successful bidder may require an exemption from the Reserve Bank of India to operate two banking entities in India, officials indicated.
The government is currently placing greater emphasis on offer-for-sale transactions and initial public offerings. Officials said new strategic sale cases are likely to be identified after the IDBI Bank transaction is completed.
The Centre is now in the third year of its current term and will need to accelerate the process if it wants to complete more strategic sale transactions. The government has already raised more than Rs 60,000 crore through disinvestment and is on track to cross its Rs 80,000 crore target if the IDBI Bank sale goes through along with other planned minority stake sales.