psu privatisation: Air India thrust: 2 more PSus to be privatised by December 2021- The government has expressed the possibility of two more government companies becoming private by December.

Highlights

  • Tata Sons unit wins bid for Air India for Rs 18000 crore
  • The road to privatization of other crumbling government companies will become easier
  • LIC’s mega listing on the stock market as well as privatization of BPCL and BEML expected in the March quarter

New Delhi
The Centre’s campaign to hand over public sector companies to private hands is gaining momentum. The government has expressed the possibility of two more state-owned companies becoming private by December. These two companies are Neelachal Ispat and Central Electronics. It has been said by the government that the transactions related to these two companies are likely to be completed by December.

Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), told TOI that the lessons learned from the first privatization in almost two decades would help in speeding up the government’s privatization drive. Other PSUs the government wants to privatize include Shipping Corporation of India and Pawan Hans. Apart from this, the government is also expecting mega listing of LIC on the stock exchange as well as privatization of BPCL and BEML in the March quarter.

Air India sale opens doors for other crumbling PSUs
After Tata Sons won the bid for the sale of Air India, it is being said that now the path of privatization of other languishing state-owned companies will become easier. The Tata Sons unit has won the bid for Air India for Rs 18000 crore. SpiceJet founder Ajay Singh-led consortium was also in the race to buy Air India, with a bid of Rs 15,000 crore from his side.

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