Ministries Informed: Strategic Sale of PSUs is Final

NEW DELHI: The Indian government has firmly decided against revising the list of public sector enterprises slated for strategic sale, despite ongoing requests from the heavy industries, fertiliser, and housing ministries. This decision comes after extensive reviews involving the Prime Minister’s Office, which have been underway for several months.

Several ministries have successfully removed some public sector undertakings (PSUs) from the sell-off list, including BPCL and Shipping Corporation. However, multiple officials have indicated to TOI that further changes to the list are unlikely. There has been a noticeable trend of government departments using inter-ministerial meetings to push for reviews, with repeated appeals made to Niti Aayog and other agencies.

The government has emphasized the need for all ministries to collaborate in achieving the strategic sale objectives. This is particularly crucial as the administration seeks to maximize revenue and demonstrate its commitment to the disinvestment process. Historically, the disinvestment efforts have been inconsistent, lacking a centralized approach, which has led to several companies, such as BEML and Shipping Corporation, falling by the wayside.

Currently, IDBI Bank is the only entity actively being pursued for privatization, with Fairfax and Emirates NBD as the two bidders. Both firms have existing investments in Indian banks and are interested in participating in the sale. However, the Reserve Bank of India will need to grant exemptions to allow them to operate two banking entities in India.

Officials have noted that the focus on offer-for-sale and initial public offerings will continue until the IDBI Bank deal is finalized. With the government now in the third year of its current term, there is pressure to expedite transactions. The Centre has already generated over Rs 60,000 crore from disinvestment efforts, and with the potential sale of IDBI Bank and other minor stake sales, it is on track to exceed its Rs 80,000 crore target.

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