Bureaucrats no more in-charge of privatisation? Govt mulls external panel to fast-track disinvestment

By: |
Updated: February 16, 2021 11:31 AM

India is considering setting up a body comprising of independent experts that will take over the role of privatizing state-run companies once the government decides to divest, according to people with knowledge of the matter.

disinvestmentThe panel will replace bureaucrats, who currently manage privatization, as well as minority stake sales, the people said asking not to be identified because the discussions are private.

India is considering setting up a body comprising of independent experts that will take over the role of privatizing state-run companies once the government decides to divest, according to people with knowledge of the matter.

The panel will replace bureaucrats, who currently manage privatization, as well as minority stake sales, the people said asking not to be identified because the discussions are private. The proposal is at an early stage and a final decision hasn’t been taken, they said.

An external panel will help accelerate the asset sale process and bypass red tape, according to the people. India still hasn’t manage to find a buyer for debt-ridden Air India Ltd. even after Prime Minister Narendra Modi’s cabinet approved the sale in 2017.

A finance ministry spokesman declined to comment.

Modi’s administration earlier this month said it will keep a “bare minimum presence” by running companies in atomic energy, space and defense; transport and telecommunications; power, oil and coal; banking and financial services, according to a notice on the Department of Investment and Public Asset Management’s website.

India plans to raise 1.75 trillion rupees ($24 billion) selling stakes in state-run companies in the fiscal year starting April 1, Finance Minister Nirmala Sitharaman said when she unveiled the federal budget on Feb. 1.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Govt to link innovative agriculture technologies to farms to help farmers in North East region
2Normal monsoon to support economic recovery; will agri commodity price rally continue in coming days?
3Fiscal policy needs to address triple whammy of inflation, low growth, threat of capital outflows