Govt to reassess interest of bidders for Shipping Corp and BEML, hits pause on Concor and BPCL

Govt to reassess interest of bidders for Shipping Corp and BEML, hits pause on Concor and BPCL



The Indian government will reassess the interest from bidders for several public sector companies slated for privatisation, including Shipping Corporation and BEML, though Concor and BPCL are no longer under consideration for the time being, reported The Times of India quoting a top official.Tuhin Kanta Pandey, secretary in the Department of Investment and Public Asset Management (Dipam), confirmed on Friday that data room access would soon be given to IDBI Bank bidders following the RBI‘s “fit and proper” assessment. The government aims to complete the sale by the end of this year.

“We will undertake a review of all the transactions, which are pending, whether bidder interest will continue,” Pandey stated in an interview with TOI. He added that companies such as Hindustan Latex Limited (HLL) and NMDC Steel are also on the list for potential privatisation.

Transactions involving Shipping Corporation and BEML have been in the pipeline for nearly four years, and their outcomes remain uncertain. Concor and BPCL sales had previously been postponed due to opposition from the respective railways and petroleum ministries.

“I won’t really conjecture at this stage. Our effort will be to see that they are successfully done. The plan has not been shelved,” Pandey clarified.

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Finance Minister Nirmala Sitharaman had earlier assured that the government would honor the plans that have already been approved. Pandey echoed this sentiment, indicating that transactions in advanced stages—with bidders and due diligence processes underway—would be prioritized.He expressed confidence regarding the IDBI Bank transaction, which has been pending for a significant period, suggesting it might conclude within the current year. “We will make substantial progress. We hope that financial bids would be available. It is in a fairly advanced stage. Early next month, we can start virtual data room access,” Pandey said.The government has also decided to move away from setting specific revenue targets from privatization and has omitted any mention of disinvestment or privatization from the Budget documents this year.

The focus remains on completing pending transactions and ensuring that approved plans are successfully executed. The reassessment aims to determine if the government should continue pursuing these transactions based on ongoing bidder interest.



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