Page 2 - Privatisation

Govt scraps sale of SAIL's Bhadravathi plant on low bidder interest

During the current financial year (FY23), so far, Rs 24,543.67 crore has been obtained as disinvestment receipts against the target of Rs 65,000 crore

IDBI Bank's privatisation process likely to conclude by Sep 2023: Officials

The financial bids for IDBI Bank privatisation is likely to be invited by March and the conclusion of the sale process is expected in the next financial year, officials said. Last week, the government along with Life Insurance Corporation (LIC) invited preliminary bids for selling 60.72 per cent stake in IDBI Bank. The last date for putting in Expression of Interest (EoI) is December 16. Once the EoIs come in and the interested parties clear RBI's 'Fit and Proper' assessment and gets Ministry of Home Affairs (MHA) security clearance, data room access would be given to qualified bidders. It is only after due diligence, that bidders would put in financial bids. Usually it takes about six months for the process of due diligence to get completed and financial bids to come in. We hope to invite financial bids for IDBI Bank by March, officials added. Considering that this would be the first case of strategic sale in bank, a lot of queries are expected to be raised during the due diligenc

Bidders for IDBI Bank to declare no conviction or adverse regulatory orders

The move comes in the backdrop of the government terminating the sale of Central Electronics Ltd (CEL) to Nandal Finance & Leasing last month

Government identifying PSUs with land bank but little business for selloff

The government is identifying public sector organisations with little to no business activities that are sitting on land banks to privatise or sell off

Telecom may be first strategic sector to be picked up for privatisation

According to the centre's PSE policy announced in 2021, the government aims to maintain 'bare minimum' presence in strategic sectors that include energy, telecom, power, banks, and minerals.

Air India processes refunds worth over Rs 150 crore after privatisation

Handles 250,000 refund cases in just the first few months since Tatas took over, says eligible request lodged on website will typically be processed within 2-3 days

Electricity Bill will pave the path for privatisation: AIPEF chairman Dubey

"The AIPEF is opposing the Electricity (Amendment) Bill, 2022, in the larger interest of the consumer and the power sector itself," said Dubey

TMS Ep263: Fuel price, privatisation, logistics stocks, Henley Passport

Why are fuel prices at pumps not going down? Is the govt going slow on privatisation? Is it a good time to buy logistics stocks? What is the Henley Passport Index? All answers here

Is the govt going slow on privatisation?

Barring Air India, the govt has made little progress on the disinvestment front. But, why? This report offers a peek into the government's disinvestment drive and tells why it is in the slow lane?

CPSEs need ministerial panel's nod to to sell units to govt entities

Providing impetus to privatisation, cabinet recently empowered the boards of the CPSEs to privatise, disinvest or close their subsidiaries and sell stakes in JVs

PSU units' privatisation to require extensive due diligence, clearance

As per the process for privatisation of PSU units, minority sale and stake sale in JVs shared by the DIPAM, boards will recommend mode of transaction to their administrative department

Govt to soon invite bids for IDBI Bank privatisation: DIPAM Secretary

DIPAM Secretary Tuhin Kanta Pandey on Wednesday said the department is working on the Expression of Interest (EoI) and would soon invite preliminary bids from investors for the privatisation of IDBI Bank. The Cabinet Committee on Economic Affairs gave in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May 2021. Currently, the government holds 45.48 per cent in the bank, and Life Insurance Corporation of India, which is currently the promoter of the bank, owns a 49.24 per cent stake. "We have been at it for quite some time. It is also a first of its kind transaction where through a bidding route we will be privatising a bank. Both government and LIC put together hold 94 per cent in IDBI Bank," he said while addressing 'FICCI CAPAM 2022 - 19th Annual Capital Markets Conference'. As the bank has come out of the Prompt Corrective Action (PCA) framework, he said its performance has improved which would generate greater interest among ...

Divestment drive: Govt looks to privatise PSUs in fertiliser sector

According to the PSE policy, 2021, the government will look at leaving non-strategic sectors, such as fertiliser, steel and tourism, by privatising or closing PSUs

Govt may invite financial bids for Shipping Corp sale in March quarter

The government is likely to invite financial bids for privatisation of state-owned Shipping Corporation of India (SCI) in the March quarter, an official said. "The demerger of non-core and land assets of Shipping Corporation is at an advanced stage. The process is expected to be over in about three months' time, after which financial bids will be invited," the official told PTI. The financial bids from potential investors are expected in the January-March quarter, the official added. In May, the board of Shipping Corp had approved an updated demerger scheme for hiving off the non-core assets of SCI to Shipping Corporation of India Land and Assets Ltd (SCILAL) including Shipping House, Mumbai and MTI (Maritime Training Institute), Powai to complete the process of de-merging all the non-core assets to the new company SCILAL. As per the balance sheet of SCI, the value of non-core assets held for demerger as of March 31, 2022, stood at Rs 2,392 crore. In March 2021, the government had

Crisis-hit Sri Lanka to privatise national carrier as it runs out of money

Sri Lanka on Monday said it will privatise the country's loss-making national carrier as the cash-strapped government "can no longer afford to inject money" into running the airline. The government is looking to sell a 49 per cent stake each of the SriLankan Airlines' catering and ground-handling units in efforts to restructure the state-run carrier, while 51 per cent will be retained under state hold, Aviation Minister Nimal Siripala de Silva told reporters here. This restructuring is essential as the government can no longer afford to inject money into running the airline, he said. Annually the government has been providing the airline between USD 80 billion to USD 200 billion to run its operations, de Silva said. The minister said the revenue from the sale of the catering operation can be used to pay off debt amounting to USD 80 million that was obtained by mortgaging its shares, as well as some other loans. The airline's debt currently amounts to USD 1.226 billion (LKR 401 ...

Govt may invite financial bids for BEML privatisation in December quarter

The government is likely to invite financial bids for the privatisation of BEML in the December quarter, an official said. Earlier this month, the corporate affairs ministry approved the demerger of land and non-core assets of BEML to BEML Land Assets Ltd. The official said that every shareholder of BEML will get shares in BEML Land Assets and the process of demerger would be completed by the end of September or early October. "Once the demerger process gets over by September-end or by early October, the financial bids for strategic sale of BEML would be invited," the official told PTI. The financial bids are expected in the October-December quarter and the draft share purchase agreement too would be finalised by then, the official added. In January last year, the government invited preliminary bids for selling 26 per cent stake in BEML along with the management control. Multiple Expressions of Interest (EoIs) were received by the government, after which the process of demerger w

Govt's approach to PSB privatisation would result in better outcomes: RBI

The RBI issued this clarification after RBI's researchers argued in a recent article that a gradual approach to the privatisation of the public sector banks (PSBs) in India is better than the big bang

Big-bang privatisation of PSUs can be harmful, says RBI article

The study has found that labour cost efficiency is higher in PSBs in comparison to private banks

India at 75: What's the way ahead for govt on privatisation, asset sales

While the govt has secured a big win by privatising Air India, it is still far from its initial goal of privatising majority of PSUs

Behind the smokescreen of nationalisation

Bank nationalisation was annulled by the Supreme Court (10-1) echoing many voices of dissent on economic grounds