After receiving approval from the Cabinet for Indian Railways’ property leasing policy, the government is prepared to announce its proposal to privatise Concor. It also hopes to move forward with the sales of BEML and an NMDC facility now that the demerger of these entities has been approved.
The sale of the IDBI Bank stake may not be completed by the end of the current fiscal year, despite the efforts of the department of investment and public asset management (Dipam), given the numerous levels of clearance needed. The IDBI Bank is not just about selling government equity but also helping LIC get back capital, whose benefit eventually flows to policyholders and shareholders. “The LIC listing was part of a strategy to make it a world-class insurer, which is professionally run,” said a senior government official.
Together, LIC and the government own over 95per cent of the nation’s largest insurer, and they want to sell 61per cent of the bank, which has recovered from significant losses thanks to the Centre’s substantial capital infusions. The official stated, “Now that a large portion of the IDBI Bank’s assets are in retail, the share of CASA (current account and savings account) has also improved.”
Although the preliminary information memorandum has been released, the government is aiming to receive expressions of interest by December. After that, each applicant will undergo an RBI “fit and appropriate” evaluation and a home ministry security clearance. Those who meet the requirements will be called to submit financial bids in the following phase.
In addition, Dipam is working on the sale of BEML, where the company’s land holdings are being divided out and will soon be listed on the market. According to officials, Shipping Corporation is nearing completion of the demerger to spin off real estate holdings into a different firm.
While attempting to scale back its involvement in non-strategic industries, the government is also aiming to close down companies that lack significant business or are unprofitable. In 2022–2023, the Centre set a goal of raising Rs 65,000 crore through equity sales in state-run businesses, and so far has raised Rs 24,544 crore.