Privatization will bring actual value to Indian Economy: Secretary, DIPAM
Jul 22, 2020
DELHI, 22 July 2020: Mr Tuhin Kanta Pandey, Secretary Department of Investment
and Public Asset Management, today
said, "Focusing on privatization will bring real benefits to the country in
terms of growth and operational efficiency but the choice of the units needs to
be revised with investor engagement process before the Expression of Interest
(EOI), in which reasonable concerns of investors needs to be addressed.'
Addressing a special session at
Annual Capital Market Conference 'CAPAM 2020' organized by FICCI, Mr Pandey said, "We have been successful in
reviving the strategic disinvestment policy and completed eight transactions in
the last few years in public sector space, but we are now shifting to the
territory of privatization."
He further mentioned, "Our
strategic disinvestment will be successful in terms of choice of units,
investor interest and in terms of speeding up the process." The COVID-19
pandemic, has led to a situation where travel market is in a state of
uncertainty, and restrictions on international travel due to the pandemic have
put brakes on strategic disinvestment of CPSEs, like Air India, but completing
the transactions remains a priority of the government, he added.
Speaking about privatization of
Air India, he said, "The government has updated the Expression of Interest of
Air India to attract investors". He further mentioned, "It would be significant
to sell the CPSEs at the right value and build a better pipeline for strategic
disinvestment so that such stake sale takes place on regular basis."
Mr Rashesh Shah, Past President FICCI and
Chief Executive Officer of Edelweiss Group said, "DIPAM has been a game-changer
and successfully played the role of an asset manager for government assets." He
further mentioned that "The next phase of growth for the capital market has to
go beyond equity markets to bond markets."
FICCI MEDIA DIVISION