Centre extends bidding deadlines for Pawan Hans disinvestment
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The authorities had invited expressions of curiosity from bidders for its 51% stake in mini-Ratna PSU Pawan Hans, with January 19 because the deadline.
The Finance Ministry has prolonged the bidding deadlines for the strategic disinvestment of Pawan Hans by a month, citing logistical challenges confronted by bidders as a result of COVID-19 pandemic.
This marks one other setback for the federal government’s already dented plans to boost ₹2.1 lakh crore via disinvestment in 2020-21, with nearly ₹14,000 crore raised up to now via minority stake gross sales.
No strategic gross sales have been concluded up to now this yr, whilst a brand new public sector coverage promised final May to energise privatisation of public sector corporations is but to be firmed up. The prolonged timelines for Pawan Hans’ stake sale requires potential bidders to submit bodily copies of the required paperwork by the primary week of March, making it tough to anticipate the sale course of to be accomplished this monetary yr.
In December 2020, the federal government had invited expressions of curiosity from bidders for its 51% stake in mini-Ratna PSU Pawan Hans, with January 19 because the deadline. The steadiness 49% stake within the agency is owned by ONGC, and the profitable bidder would get an choice to purchase out the oil main’s stake on comparable value and phrases as agreed for the Centre’s stake.
The deadline for evincing curiosity has now been prolonged until February 18 “considering the prevailing Covid-19 situation and consequent logistical challenges faced by Interested Bidders”, the Department of Investment and Public Asset Management (DIPAM) mentioned in a notification.
Strategic gross sales of public sector corporations like Air India and BPCL are unlikely to conclude this yr, neither is the plan to listing the Life Insurance Corporation of India on the bourses more likely to take off by March 31, 2021, as amendments are wanted to the LIC Act of 1956.
The authorities may miss its disinvestment targets for the yr by a large margin, however the stress on the exchequer to boost assets to prop up a fledgling financial restoration and meet expectations of upper outlays for healthcare may translate into even stiffer disinvestment targets in 2021-22.
The enhance in public spending within the upcoming Budget should be financed to a big extent by garnering disinvestment proceeds and monetising property, Brickwork Ratings mentioned in its newest financial outlook report launched final week. “The next year will present greater opportunities to fast-track strategic disinvestment not merely to raise resources for revival, but also to eliminate the need for the government’s involvement in non-strategic areas,” it mentioned.
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