Business

Divestments in Air India, BPCL unlikely this fiscal

Process is facing delays, says official

In what can potentially hurt the math for the ongoing fiscal, a senior government official said strategic divestments in Air India, BPCL and Container Corporation are ‘unlikely’ to be completed in FY20. Work on all these companies is on and the process is facing delays due to “surprises” encountered once the wheels began moving, the official from the Department of Investment and Public Asset Management (Dipam) said.

The Ministry had budgeted to garner ₹1.05 lakh crore from divestments during the fiscal. When asked if the strategic divestment in BPCL, which alone can fetch the government over ₹60,000 crore if it were to sell its entire 53% stake, will be completed this fiscal, the official said, ‘unlikely’.

On Container Corporation (Concor) and Air India as well, the official said the sale would not go through in the current fiscal ending March 31. The official said the government is preparing the financial statements and getting the data room ready for the sale.

Till now, the industry has shown ‘excitement’ over the companies which are being floated, the official said, adding that there are additional details which may be sought by potential bidders.

The strategic sale in Shipping Corporation of India is at a certain stage and going strong, the official said.

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Printable version | Feb 23, 2020 11:10:46 AM | https://www.thehindu.com/business/divestments-in-air-india-bpcl-unlikely-this-fiscal/article30462829.ece

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