NEW DELHI: The government will “persist and persevere” with strategic disinvestment despite the Covid-19-imposed delay, Dipam secretary Tuhin Kanta Pandey said on Wednesday and asserted that the sale of staterun companies such as Air India (AI) remains a priority.
“Normally, strategic disinvestment takes 8-9 months…. To a lot of extent, Covid-19 has put a brake on this because international travel has virtually stopped. To some extent, we have to grant extension to some of the EoIs (expressions of interest) that we have issued. It is not that the investors are not engaged, but they want more time. Because one thing which is not open yet is international travel,” Pandey told a webinar organised by industry lobby group Ficci.
In a bold decision, the government has decided to go for strategic disinvestment in BPCL, Concor, Air India, Shipping Corporation of India and has invited bids for AI and BPCL. However, the deadlines have been extended due to the impact of Covid-19 pandemic.
The Dipam (department of investment and public asset management) secretary said the government had been successful in reviving the strategic disinvestment policy and completed eight transactions in the last few years in public sector space, and has now shifted gears to the “new and important territory” of privatisation.