Fast-track admin processes to meet divestment target: Parliamentary panel

A Parliamentary panel has called for fast-tracking administrative processes to fully meet divestment target and has suggested that the Department of Investment and Public Asset Management (Dipam) should have adequate administrative flexibility during the divestment process, especially for strategic divestment.

 

While making commercial decisions such as selling an asset, substantial administrative flexibility is needed to reach an agreement, the Parliamentary Standing Committee on Finance said in its report.

 

The panel said it is “concerned” that meeting divestment target is pivotal to the Budget, and wavering from the estimates may lead to quantum change in the fiscal dynamics. The committee called for fast-tracking administrative processes so that divestment targets are fully achieved.

 

As the Covid-19 pandemic derailed the government’s divestment plan, the share sale and privatisation target was revised downwards from Rs 2.1 trillion to Rs 32,000 crore.