Amidst the divestment plans for the FY2021-22 taking a hit, the government is planning to fast-track the asset monetization process in India, Moneycontrol reported citing sources. The development comes at a time when the government has slashed its LIC IPO size from 5 per cent to 3.5 per cent at Rs 21,000 crore. The initial public offering of Life Insurance Corporation is likely to take place in the first week of May.
According to the report, on April 29, the government is planning to discuss with the group of secretaries of 12 core ministries—namely petroleum & natural gas, ports, shipping and waterways, railways, civil aviation, power, coal, mines, road transports, and highways, tourism, food, and public distribution, sports, and telecommunication— the target achievement by different ministries and the preparedness for the transactions in the pipeline for the current fiscal year.
The report said that the government monetized assets worth Rs 1 lakh crore and is aiming to monetize assets worth Rs Rs 1,62,422 crore this year.
Notably, the government had a divestment target of Rs 78,000 last year, but could only raise Rs 12,423 crore by selling Air India to the Tata Group. The government has also put the privatization of Bharat Petroleum Corporation Limited (BPCL) on hold. The government is planning to sell 53 per cent with the privatization of BPCL.