Disinvestment drive picking up: DIPAM

Kolkata: Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Thursday said that several privatisation transactions of government majority stake sale were now in an advanced stage and Expressions of Interest (EoI) will be invited soon.

Speaking at a webinar organized by the Merchants Chamber of Commerce and Industry (MCCI), Pandey said that the government has recently privatised successfully two organisations, Air India and Neelachal Ispat Nigam Limited (NINL) to strategic partners. He said that the share purchase agreement (SPA) got the approval of the Cabinet on Wednesday. According to him, the department is getting ready with the EoIs for Bharat Petroleum Corporation (BPCL), Bharat Earth Movers Limited (BEML), Shipping Corporation of India (SCI), certain units of SAIL and steel plant of National Mineral Development Corporation (NMDC). He said three important companies, Railtel, IRFC and Mazagaon Dock were listed last year during COVID. Regarding the mega-IPO of LIC, Pandey said the DRHP has been filed already. "We are watching the market conditions due to the Russia-Ukraine conflict. Hopefully, the IPO will be brought to the market soon and it will be a great opportunity for the Indian capital market", the DIPAM secretary said.

The LIC maiden offer will also deepen the capital market. The government plans to sell five per cent of its shareholding in LIC to fetch Rs 60,000 crore. In the context of the asset monetisation plan, he said it is like a concession and not an ownership transfer and is taking place all over the world. Regarding National Land Monetisation Corporation, recently formed by the government, he said the idea is to unlock the value of surplus land which is an important input needed for growth.