We are hopeful of completing the transaction for Numaligarh Refinery by this fiscal, says Tuhin Kanta Pandey, Secretary, DIPAM (Department of Investment and Public Asset Management).
This refinery, which is part of Bharat Petroleum Corporation Ltd (BPCL), is to be hived off separately and sold to a public sector company.
Talking to BusinessLine, Pandey also made it clear that there will not be much reliance on equity-based exchange traded fund (ETF). Excerpts:
How do you propose to achieve the high disinvestment target during FY21?
A major reliance would be on strategic sales because only those kind of sales give you the kind of money that will help you achieve this ambitious target. The target will be achieved if we are able to conclude some of the big ticket disinvestments such as Air India, BPCL, SCI and Concor. We may have to conclude them during the next fiscal. The proposals for strategic sales keep coming. Once the NITI Aayog identifies the PSU, we sit with them and then the proposal goes to the CCEA. So, more strategic sales will happen.
Will there be more focus on initial public offers?
The CCEA’s direction is that if you follow SEBI’s guidelines, everyone must come out with an IPO. A lot of IPOs have come out in the last 3-4 years and now there will IRFC’s IPO, which is a very large organisation. But there are not many CPSEs that can garner huge sums of money through IPOs.
Some recent IPOs of CPSEs (such as New India Assurance) have not given good return…
Companies also need to continuously do well in this business as competition is high. An insurance company must focus on its bottomline as there are many private companies that are chipping into share of public sector insurance companies.