The government is set to launch the plan to privatise Concor after the Cabinet nod for the land leasing policy of Indian Railways and is hoping to move ahead with sale of BEML and an NMDC plant as the demerger of these entities has been cleared.
The government is set to launch the plan to privatise Concor after the Cabinet nod for the land leasing policy of Indian Railways and is hoping to move ahead with sale of BEML and an NMDC plant as the demerger of these entities has been cleared.
While the department of investment and public asset management (Dipam) will also seek to close the IDBI Bank stake sale by the end of current fiscal, the transaction may spill over into next financial year, given the multiple layers of clearances required.
“The IDBI Bank is not just about selling government equity but also help LIC get back capital whose benefit eventually flow to policyholders and shareholders. LIC listing was part of a strategy to make it a world-class insurer, which is professionally run,” said a senior government official.
Between them, LIC and the government hold close to 95% stake in the country’s largest insurer and are looking to sell 61% in the bank, which has emerged from massive losses after the Centre pumped in large amounts of capital. “Now a bulk of the IDBI Bank’s assets are in retail, the share of CASA (current account and savings account) has also improved,” the official said.
While the preliminary information memorandum has been issued, the government is hoping to get expressions of interest by December, which will be followed by each applicant’s “fit and proper” assessment by the RBI and security clearance by the home ministry. In the next stage financial bids, will be called from those who meet the norms.
Dipam is also working on the sale of BEML, where the land assets are being demerged, with the new entity to be listed shortly. Similarly, officials said, Shipping Corporation is in the final stages of the demerger to spin off real estate assets into a separate company.
While the government is looking to reduce its presence in the non-strategic sectors, it is also working on winding up companies that do not have major business or are unviable. The Centre has set a target of raising Rs 65,000 crore from stake sales in state-run companies in 2022-23 and has so far raised Rs 24,544 crore.
