Pandey on a better asset pipeline for strategic disinvestment
The government has updated the Expression of Interest for the privatization of Air India to attract investors, disclosed Tuhin Kanta Pandey, Secretary Department of Investment and Public Asset Management (DIPAM).
The COVID-19 pandemic, has led to a situation where the travel market is in a state of uncertainty, and restrictions on international travel due to the pandemic have put brakes on strategic disinvestment of CPSEs, like Air India, but completing the transactions remains a priority of the government, he stressed.
Addressing a special session at the 17th Annual Capital Market Conference ‘CAPAM 2020’ organized by FICCI on 22 July 2020, Pandey said, “We have been successful in reviving the strategic disinvestment policy and completed eight transactions in the last few years in public sector space, but we are now shifting to the territory of privatization.”
“Our strategic disinvestment will be successful in terms of choice of units, investor interest and in terms of speeding up the process.”
Privatization will bring real benefits to the country in terms of growth and operational efficiency but the choice of the units needs to be revised with the investor engagement process before the Expression of Interest (EOI), in which reasonable concerns of investors’ needs to be addressed, he stated.
“It would be significant to sell the CPSEs at the right value and build a better pipeline for strategic disinvestment so that such stake sale takes place on a regular basis,” said Pandey.
“DIPAM has been a game-changer and successfully played the role of an asset manager for government assets,” added Rashesh Shah, Past President FICCI and Chief Executive Officer of #Edelweiss Group said.
“The next phase of growth for the capital market has to go beyond equity markets to bond markets,” said Shah. #IATA #privatization #invetments #assets #assets /fiinews.com
