The government is considering selling stakes in public sector undertakings BHEL, Mecon, and Andrew Yule and Co., stated a news report. While BHEL said it is unaware of such a plan, the spokespersons of the Department of Investment and Public Asset Management (Dipam), ministries of finance and steel, Department of Heavy Industry, Mecon, and Andrew Yule did not respond to this query. But a source confirmed this development.
The report by Livemint added that SBI Capital Markets Ltd., the adviser to the proposed stake sale in BHEL, has already submitted its report to Dipam. Meanwhile, SBI Capital is also advising Dipam on the proposed stake sales in Mecon and Andrew Yule.
This stake sale will be in line with the government's plans to raise Rs 1.75 lakh crore through disinvestment in FY 2021–22. Due to the COVID-19 pandemic, the government could only raise Rs 15,220 crore as on 20 January as against the disinvestment target of Rs 2.1 lakh crore. It was aiming to raise Rs 90,000 crore from disinvestment in financial institutions alone.
It is assumed that the government's focus is to speed up big-ticket strategic sale of large ones such as Air India, Bharat Petroleum Corporation, Container Corporation of India, and Shipping Corporation of India as well.
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