Uncertainty looms over Rs 2.1-trn divestment target amid coronavirus spread

In its April Monetary Policy report last week, the Reserve Bank of India said the global economy is expected to go into recession after taking into account the impact of the Covid-19 pandemic

The Covid-19 pandemic and the resultant slowdown in the global economy have cast serious doubts on the highest-ever disinvestment target of Rs 2.1 trillion that Finance Minister Nirmala Sitharaman had set for 2020-21.

The most optimistic assumption, according to informed sources, is there will be no transaction in the first half of the year (April-September). The worst-case scenario is the two marquee names up for privatisation — Air India and Bharat Petroleum — may not happen this year, and what the Centre may get in divestment proceeds could just be a fraction of the target.

In its April Monetary Policy