“With Concor, the only detail that needs working out is the terms under which the Indian Railways will lease land to the prospective buyer. Once that is finalised, the EOI will be issued, as it will contain those details and Concor’s valuation depends on that,” the official said. The storage facilities and warehouses where Concor stores containers are on lands that belong to Railways.
After that, by March 15, Shipping Corp’s EOI and PIM will likely be issued. The road shows for the company are still pending, the person said. The possible destinations include Singapore, Dubai, and major shipping industry destinations in Europe.
Additionally, either BPCL
or Air India will be the first company whose stake sale will be carried out through the new e-bidding platform that has been set up for divestment, a second official said. This shift to an online medium is expected to streamline the process and make it transparent.
Moreover, for FY20, officials said the revised divestment plans will not be derailed because of cancelled road shows in the Far East over fears of Coronavirus. The cancelled road shows — for the initial public offering of Indian Railway Finance Corporation (IRFC) and offers-for-sale of National Mineral Development Corporation (NMDC) and Steel Authority of India (SAIL) — will be held through videoconferencing, and these three public issues are expected to happen before March 31.
The disinvestment target for FY21 has been set at Rs 2.1 trillion. This is over double the Rs 1 trillion that Dipam garnered in FY18. For FY20, Finance Minister Nirmala Sitharaman pegged a target of Rs 1.05 trillion. This was reduced to Rs 65,000 crore in the latest Union Budget. Around Rs 35,000 crore has already been garnered so far for FY20, Dipam officials said.
Out of the Rs 2.1 trillion budgeted for FY21, around Rs 90,000 crore is expected to come from sale of Centre’s stake in financial sector companies like IDBI Bank and Life Insurance Corporation. A bulk of the remaining Rs 1.2 trillion is expected to come from the privatisation of the four large PSUs.
The government will offload its entire 53.29 per cent stake in BPCL, 63.75 per cent stake in Shipping Corp and 100 per cent stake in Air India. It will offload 30.8 per cent stake in ConCor, in which its total stake is around 54.8 per cent.