COVID-19 crisis delays government#39;s FY22 strategic divestment plans

Stocks

The Centre still hopes to receive bids for Air India by September and expecting to close the Air India, BPCL transactions in FY22.

Centre Divestment Schedule

Centre Divestment Schedule

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The government’s strategic divestment plans for the fiscal year 2021-22 has slowed down due to the second wave of COVID-19, according to a CNBC-TV18 report.

The due diligence process for the Air India and Bharat Petroleum Corporation (BPCL) stake sales has been delayed by a few months and an additional time of three months has been sought, sources told the news channel.

Divestment of Shipping Corporation of India (SCI) and BEML is also likely to be delayed due to the second wave of COVID-19 cases in the country.

The Centre still hopes to receive bids for Air India by September and expects to close the Air India, BPCL transactions in the current fiscal year.

During the Budget presented in February, the government set an ambitious disinvestment target of Rs 1.75 lakh crore for FY22.

Union Civil Aviation Minister Hardeep Singh Puri on March 27 said Air India will be “100 percent disinvested”, saying the choice is only between disinvestment and closing down the national carrier.