InvestorQ : When is the next list of divestment candidates likely to be prepared with the timetable of dates for the same?
Moii Chavate made post

When is the next list of divestment candidates likely to be prepared with the timetable of dates for the same?

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Tisha Malhotra answered.
4 months ago
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The NITI Aayog, which was formerly called the Planning Commission in India, is expected to prepare the next list of divestment candidates in the next few weeks. The list will be made public very soon and it is expected that the list will be accompanied by a detailed and elaborate timetable ahead of the new fiscal year.

It may be recollected that the Union Budget 2021 has set a very aggressive target for divestment at Rs.175,000 crore for the full fiscal year. In the previous year, the government had budgeted Rs.210,000 crore via disinvestment but it may end up less than 20% of that amount as the LIC IPO could not go through due to the pandemic.

This year for fiscal 2022, the list of divestment candidates includes the mega LIC IPO, where the necessary spade work to make regulatory changes and obtain appropriate approval from the regulatory bodies has already commenced. The process itself is elaborate and is likely to take over 6 months so LIC IPO would happen in the last quarter of FY22.

The FM has already indicated in the budget that some of the big divestment names, other than LIC, including CONCOR, Shipping Corporation and BPCL would only be taken up for disinvestment in the fiscal year 2022. That sets up a full slot of quality PSUs for the full year and that is likely to substantially boost the divestment target.

In addition, there is also the grand plan to privatize two PSU banks, apart from IDBI Bank, and one general insurance company during the next fiscal. Buybacks may take a back seat for PSUs as the government is likely to focus a lot more on divestment of minority stakes, strategic sale, full fledged privatization as well as monetization of income generating assets.

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