The government has set a target of raising Rs 1.75 lakh crore from disinvestment in government companies in the current financial year. Finance Minister Nirmala Sitharaman announced this in the budget . With the successful privatization of Air India, the government’s strategy and goals seem to be coming back on track. After Air India, the government has accelerated the process of privatization of IDBI Bank, Shipping Corporation of India, BEML, Pawan Hans and Nilanchal Ispat Nigam. While the process of disinvestment of BPCL is expected to be completed by December this year. At the same time, preparations are in the final stages to sell 10 percent stake through LIC’s IPO by March next year. The cabinet has approved for this.
Highest expectation from LIC
The government has set a target of disinvestment of Life Insurance Corporation of India (LIC) by the end of this financial year i.e. March 2022. For this, preparations are being made to bring LIC’s IPO for which merchant bankers have been appointed. The valuation of LIC is estimated to be between Rs 8-10 lakh crore. If this happens, the government can raise capital from 80 thousand crores to one lakh crore rupees by selling its 10 percent stake. LIC’s IPO can prove to be the biggest IPO of the Indian stock market.
How much will you get from BPCL
The government is going to completely privatize Bharat Petroleum Corporation Limited (BPCL). In this, the central government can sell its entire 52.98% stake. According to the market value, the government will get about 52 thousand crore rupees from this stake sale. Companies like Vedanta, Apollo Global Management and Think Gas have shown interest to buy BPCL.
IDBI Bank
The central government and LIC together hold 94 percent stake in this bank. LIC holds 49.24 per cent and the government holds 45.48 per cent. Apart from this, 5.29 percent stake is held by others. Its disinvestment is also to be done in the current financial year.
SCI and Pawan Hans
The Shipping Corporation of India (SCI) and Pawan Hans are also to be privatized before March 2022. The government is selling its entire 63.75 per cent stake in Shipping Corporation of India. The government has 51 per cent stake in helicopter maker Pawan Hans and 49 per cent stake in state-owned oil and gas company ONGC. The government has been preparing to privatize Pawan Hans for the last several years but so far no success has been achieved.
Nilanchal Ispat and BEML
Nilanchal Ispat Nigam and BEML are also to be privatized by March 2022. Nilanchal Ispat Nigam is a joint venture between several central government companies MMTC, NMDC, BHEL, MECON and two Odisha government companies OMC and IPCOL. At the same time, the government wants to sell only 26 percent of its 54.03% stake in BEML. Established in 1964, the company manufactures rail coaches and spare parts and mining equipment.
