Government is on track to privatise two public sector banks: Report

According to the sources, the government is on course with the privatisation of two public sector banks (PSBs) and will take appropriate steps in the coming months, Business standard reported. 

In the Union Budget for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises.

The government think-tank NITI Aayog has already suggested two banks and one insurance company to the Core Group of Secretaries on Disinvestment for privatisation.

The Central Bank of India and Indian Overseas Bank are likely candidates for privatisation, sources said. 

As per the process, the Core Group of Secretaries, headed by the Cabinet Secretary, will send its recommendation to the Alternative Mechanism (AM) for its approval and eventually to the Cabinet headed by the Prime Minister for the final nod.

Besides, sources also said the divestment of BPCL is also on the cards and fresh bids will be invited as the government's divestment programme moves slower than expected. 

According to media reports, the government is considering inviting bids for a 20%–25% stake in BPCL, instead of an outright sale of its entire 52.98% holding. 

The Indian government had ambitious plans to sell its entire 53 per cent stake in BPCL to private players in 2021-22, but this target was pushed back to 2022-23 due to delays.

Further, regarding the strategic sale of Container Corporation of India (Concor), sources said, there are some issues, and the process would be undertaken after those are resolved.

The Cabinet, in November 2019, approved the strategic sale of a 30.8 per cent stake, along with management control, in Concor out of the government equity of 54.80 per cent. The government will retain a 24 per cent stake post-sell-off but without any veto powers.

Meanwhile, the Centre has put on hold the sale of loss-making helicopter service provider Pawan Hans as it is legally examining a National Company Law Tribunal (NCLT) order against Almas Global, which is part of the winning consortium, according to reports.