According to sources in the government, the proposal to divest stake in Air India is in the works and can possibly conclude this year.
The Department of Investment and Public Asset Management (DIPAM), along with the Niti Aayog, is looking at various public sector units (PSUs) that are potential candidates for privatisation. The government also plans to come out with Bharat 22 ETF in the first week of October this year with a base size of Rs 2,000 crore. According to sources in the government, the proposal to divest stake in Air India is in the works and can possibly conclude this year.
Officials also added the government is planning to bring down its equity holding in select entities below 51%. But government approval is yet to come in this regard. An official said the Cabinet had in the past decided to own at least 51% in PSUs and the Cabinet itself will now have to take a call on going down below the level. DIPAM is also looking at Specified Undertaking of Unit Trust of India (SUUTI) stake sales in private companies. “Government’s disinvestment plans could also involve the huge land parcels or non-core asset that PSUs have been holding on their books,” said the official, on condition of anonymity.
Speaking at the 16th Annual Capital Market Conference organised by FICCI, Dheeraj Bhatnagar, additional secretary for DIPAM, said, “The government is looking at potential strategic stake sales in the non-priority sector.”