Notwithstanding the disruption to businesses caused by the second wave of COVID-19, the government is aiming to conclude privatisation of PSUs, like Air India, BPCL and Shipping Corporation – where the divestment process has already started – in this financial year, sources said on Wednesday. 

The worst outbreak of the pandemic in the country has led to disrupting the timetable of scheduled activities, such as physical due diligence because of travel restrictions. But the process is likely to get back on track from September, the sources with the direct knowledge of the government’s privatisation plans said. 

The process of privatisation of Air India, BPCL, Pawan Hans, BEML, Shipping Corporation and NINL has already moved to the second stage after the government received multiple expressions of interest (EoIs) for these CPSEs. 

The Budget for 2021-22 has set a disinvestment target of Rs 1.75 lakh crore, higher than Rs 32,835 crore garnered in the last financial year. Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling government’s stake in public sector banks and financial institutions. Rs 75,000 crore would come as CPSEs’ disinvestment receipts. 

In her Budget speech, Finance Minister Nirmala Sitharaman had said that strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam, among others, and IPO of LIC would be completed in 2021-22.