The Government of India has clarified to its ministries that it is not going to make any change in the list of Public Sector Enterprises (PSEs) lined up for strategic sale. The Centre has categorically ruled out any possibility of going back on the strategic sale of PSUs or diluting its list for disinvestment. The development bears significance as some ministries, like Heavy Industries, Fertiliser, and Housing, have been making repeated demands for a review.
The matter of fact is, with the involvement of the PMO, the Union Govt has conducted an extensive exercise reviewing the list of public sector companies that have been identified for disinvestment, listing, and closure over the last few months. While individual ministries managed to get several of the PSUs originally on the sell-off list — such as BPCL and Shipping Corp—out of the govt’s scheme, sources indicate there is little possibility of further dilution.
Senior officials say that inter-ministerial meetings were often used by govt departments as a platform to press for a review, with some of them repeatedly approaching Niti Aayog and other agencies suggesting a review.
But the message is clear that all ministries have to make coordinated efforts in the direction of meeting the goal of strategic sales. The reason is the govt is keen on maximising revenue and wants to send a strong message that it is serious about it.
Undoubtedly, despite the govt’s commitment to disinvestment, the process had become messy with no centralised list even in place. As a result, even the companies that were being pursued for privatisation were also lost on the way, like the BEML or Shipping Corp.
Even now, just one entity—IDBI Bank—is sought to be privatised with all eyes on the Prem Vatsa-owned Fairfax and Emirates NBD being the two bidders in the fray. While both have investments in Indian banks, Catholic Syrian Bank and RBL, respectively, they are keen on being part of the exercise. For either, the RBI will have to step in and provide some exemption to facilitate running two banking entities in the country.
As per government sources, given the current emphasis on disinvestment, strategic sale cases will be identified once the IDBI Bank deal closes.
As the BJP govt at the Centre enters the third year of its current term, it will have to move quickly so that more transactions can be pursued.
The Centre has already raised over Rs 60,000 crore from disinvestment and may even beat the Rs 80,000 crore target if the IDBI Bank sale, along with some other small stake sales, materializes this time.
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