Strategic Disinvestment

Today's editorials and columns examine Sebi's revised closing auction framework, leadership vacancies in higher education, PSU disinvestment, insolvency delays and a book exploring Delhi's history.

Today's editorials and columns examine the IDBI Bank privatisation deal, India's steel ambitions, tribunal reforms, AI-driven infrastructure improvements and a book on the changing geopolitical order

The government has achieved about 78 per cent of the FY27 budgeted disinvestment and asset monetisation target of Rs 80,000 crore within 5 months of the financial year. The government has raised Rs 55,757 crore so far this fiscal through minority stake sale in 9 PSUs, including the big ticket ones like LIC and Coal India, as well as strategic sale of Indian Medicines Pharmaceuticals Corporation Ltd and remittances from SUUTI. More than half of the disinvestment proceeds came from the 6.5 per cent stake sale in Life Insurance Corp (LIC) which garnered Rs 31,515 crore. Further, a 2 per cent share sale in Coal India fetched about Rs 5,542 crore, while a 6.01 per cent stake dilution in NHPC fetched Rs 4,357 crore to the exchequer. Earlier this week, the government sold 6 per cent stake in Hindustan Copper to raise Rs 3,041 crore. The other entities in which the government disinvested its stake are Central Bank of India, NLC India, GIC, IRFC, Cochin Shipyard and Hindustan Copper. Besi

From strategic privatisation to market-based stake sales, here's how the government's disinvestment strategy has changed since economic liberalisation in 1991

Centre looks to step up stake sales in CPSEs to meet Sebi's MPS norms, revive strategic disinvestment, and boost market discipline amid legal hurdles, execution delays, and limited investor appetite

Central government and LIC are set to divest 61% stake amid strategic disinvestment drive. The govt aims to generate Rs 50,000 crore through asset monetisation this fiscal year

It has never happened that the budget estimate for dividends from such companies has failed

With general elections on the horizon, the government's privatisation bandwagon has almost but stalled as a government wary of being accused of selling family silver opts for minority stake sales on stock exchanges over outright privatisation. The result -- the disinvestment target for current fiscal year is again likely to be missed. Big ticket privatisation plans such as that of Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI) and CONCOR are already on the backburner and analysts feel meaningful privatisation can happen only after April/May general elections. In the current fiscal, out of the budgeted amount of Rs 51,000 crore, about 20 per cent or Rs 10,049 crore has been collected through minority stake sales via IPO (Initial Public Offering) and OFS (Offer For Sale). Strategic sale of a host of Central Public Sector Enterprises (CPSEs), including SCI, NMDC Steel Ltd, BEML, HLL Lifecare and IDBI Bank, are in the pipeline for completion in the current

Majority owner in consortium that won stake sale for state-owned helicopter operator faces legal trouble

Consortium of foreign funds, investment companies will be allowed to own over 51% of IDBI Bank

In December 2019 the decision was revised to allow sale of land to private entities as well through a competitive bidding process

Landing the listing, which is slated for next month, will test India's capital markets at a time when about $5 trillion has been wiped out from global equities

The FM also allocated as Rs 2,268 crore for a special purpose vehicle set up as part of financial restructuring of the debt-laden national carrier

The government has set an all-time high disinvestment target of Rs 1.05 lakh crore, up from Rs 90,000 crore projected in the Interim Budget 2019-20 in February.

The first deal will clear the path for many more. It will also be the toughest to execute

The government has set a 50-day timeline for asset valuation to happen in BPCL, as it wants to complete the process before March 31, 2020

A major reason why the government kept NRL outside the strategic sale of BPCL was its importance to the Assam Accord

The finance minister stated the strategic disinvestment of the two state-run companies is critical for the government to meet its disinvestment target of Rs 1 trillion for the current fiscal year

While DIPAM can still meet or come close to the divestment target of Rs 1.05 trillion, it may not be on the back of strategic sales or asset monetisation

Biggest strategic divestment planned for completion in FY18 is sale of its 51% stake in HPCL to ONGC