COVID-19 has put a brake on strategic disinvestments: DIPAM Secretary

DIPAM Secretary Tuhin Kanta Pandey on Wednesday said that the COVID-19 pandemic has put a brake on strategic disinvestment adding that it is too difficult to engage with investors for disinvestment of public sector companies now.

New Delhi:The COVID-19 pandemic has put a brake on strategic disinvestments, said Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) here on Wednesday.

He said it is too difficult to engage with investors for disinvestment of public sector companies now.

"Currently, DIPAM has been tasked with the disinvestment of Public Sector Undertakings like Air India and BPCL where bids for strategic sale of national carrier Air India and oil major BPCL have been invited. However, their bid deadlines have been extended amid the COVID-19 pandemic," Pandey said while addressing FICCI's 17th Annual Capital Market Conference 'CAPAM2020'.

Pandey assured, "Once the situation becomes normal and we gear up the process of disinvestment of Air India, I am sure that this time we will be successful."

He said the system is now shifting gears to privatisation and that it will bring real benefits to the economy.

"Life Insurance Corporation (LIC), India's largest insurance company is fully prepared to hit the stock market and the initial public offer (IPO) will come soon. All the formalities are in place. We will also encourage other private exchange-traded funds (ETFs) also to come on board," he added. (ANI)