Govt not going back on privatisation of Air India, BPCL

Agencies
December 27, 2020

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New Delhi, Dec 27: Covid-19 carnage may have slightly pushed back timelines but there is certainly no going back on privatisation of bluechip public sector undertakings like BPCL and Air India as the government feels it has no business to be in business.

The spadework started late last year and 2020 was supposed to be the landmark year in India's history of privatisation with at least three top PSUs — the nation's second-biggest fuel retailer Bharat Petroleum Corporation (BPCL), national carrier Air India and Shipping Corporation of India (SCI) up for sale.

The outbreak of the coronavirus pandemic pushed the timelines into the next fiscal but the government is firm on not going back on its disinvestment plans with Finance Minister Nirmala Sitharaman on more than one occasion emphatically stating that the government will continue to push for stake sales.

Oil Minister Dharmendra Pradhan, whose ministry is the nodal ministry for BPCL, went to the extent of saying that, "the government has no business to be in the business".

In February, Sitharaman set a record disinvestment target of Rs 2.10 lakh crore for the fiscal beginning April but Rs 12,380 crore from minority stake sales in four public sector companies is all that has been garnered so far.

The disinvestment target, like last year, looks almost impossible to achieve. The target was anyway daunting as it was four times that of Rs 50,298 crore raised in 2019-20.

The target of Rs 2.10 lakh crore, includes Rs 1.20 lakh crore from CPSE disinvestments and Rs 90,000 crore from stake sale in state-run financial institutions, including LIC and IDBI.

Government officials expressed confidence in completing BPCL and Air India sale in the next few months.

Privatisation drive

The Department of Investment and Public Asset Management (DIPAM), which manages government stake sale programs, had kicked off the privatisation drive inviting preliminary bids for debt-laden Air India in January. In early March, it invited bids for selling its 53.29 per cent in oil marketing and refining firm BPCL.

But then, India imposed a nationwide lockdown to contain the spread of coronavirus from March 25. The outbreak of the pandemic took its toll on the privatisation drive and the government had to repeatedly extend the deadline for submission of bids for the two companies.

As the year drew to a close, the government said it has received "multiple" preliminary bids for the two companies, but the real test remains with those translating into financial bids after potential investors undertake detailed scrutiny of the companies.

While mining-to-oil conglomerate Vedanta and two global private equity funds -- Apollo Global Management and I Squared Capital-owned Think Gas -- have put in bids for BPCL, salt-to-software conglomerate Tata Group and US-based fund Interups Inc are among the potential buyers of Air India.

Late in 2020, the government invited preliminary bids for the sale of its entire stake in Shipping Corporation of India (SCI) with the hope of completing the transaction in 2021.

With over two dozen companies, including Container Corporation, Cement Corporation, BEML, Pawan Hans, Scooters India and some steel plants of SAIL lined up for strategic sale since 2019, the question remains as to how soon the real privatisation drive starts.

Trailing CPSE shares

With share prices of CPSEs (Central Public Sector Enterprises) trailing compared to private sector peers, the government has put the onus on the top management of CPSEs to improve investor confidence by way of quarterly dividend payout to reward them and engage with them to assuage their concerns, if any.

DIPAM Secretary Tuhin Kanta Pandey had flagged the issue of lagging market valuation of CPSEs saying that between March and November while the Sensex and the Nifty rose by about 50 per cent, the BSE CPSE Index climbed only 19 per cent.

"In general, we have a problem with PSU stock valuation in the market. We must also do atma chintan (introspection)... as to why this is happening. Is it due to something inherently problematic in the way we manage our companies, or is it some issue in the government policy," Pandey had said.

He had also suggested the inclusion of CPSEs' market capitalisation improvement and asset monetisation as parameters in the MoU target they sign with the government.

Improving share price is the need of the time and till privatisation starts, the government would be banking on minority stake sales to meet its disinvestment target.

Revenue pressure

The run rate of disinvestment mop-up has been slow in the first nine months, but then typically, it is the January-March period that sees the conclusion of a spate of deals. The plans to launch the initial public offering of Life Insurance Corporation (LIC) this fiscal is ambitious as the pre-IPO process of the country's largest insurer would take time with technicalities involved in actuarial valuation and valuation of huge real estate assets of the company.

While Air India disinvestment is not likely to conclude by March 2021, the BPCL deal, coupled with privatisation of Shipping Corporation and CONCOR can push disinvestment proceeds to close to Rs 80,000 crore this fiscal. However, that would still be far less than the Rs 2.10 lakh crore earmarked from disinvestment.

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coastaldigest.com news network
November 29,2025

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Mangaluru, Nov 29: Around 12,500 healthcare students from Medical, Dental, AYUSH, Pharmacy, Nursing, Physiotherapy and Allied Health Sciences colleges of Dakshina Kannada, affiliated to Rajiv Gandhi University of Health Sciences (RGUHS), took part in a massive walkathon to promote awareness on Organ Donation and Nasha Mukth Bharat.

The inaugural ceremony was held at Mangala Stadium. Dr Bhagavan B C, Hon’ble Vice-Chancellor of RGUHS, delivered the welcome address. The walkathon was flagged off by Shri U T Khader, Hon’ble Speaker of the Karnataka Legislative Assembly, and presided over by Shri Dinesh Gundu Rao, Hon’ble Minister for Health, Family Welfare and Dakshina Kannada District In-charge. Dakshina Kannada MP Shri Brijesh Chowta also addressed the students.

Music director Guru Kiran, MLA Dr Bharat Shetty (Mangalore North), Police Commissioner Shri Sudheer Kumar Reddy, Shri Manjunath Bhandary and Shri Harish Kumar were among those present.

Institution heads including Dr Haji U K Monu (Kanachur Colleges), Dr Shantharam Shetty (Tejaswini College), Dr Bhaskar Shetty (City Group of Colleges), Mr Abdul Rahiman (Kanachur Institute of Medical Sciences), and the District Health Officer, Mangalore, also participated.

The vote of thanks was delivered by Prof U T Ifthikar Fareed, Syndicate Member, RGUHS.

The event was organised by Dr U T Ifthikar Ali and Dr Shiva Sharan (Syndicate Members), Prof Vaishali (Senate Member), Prof Mohammad Suhail (Chairman, BOS Physiotherapy), Dr Sharan Shetty (Former Senate Member), along with principals and faculty of various colleges.

Students marched from Mangala Stadium to Karavali Grounds via MCC and Lalbagh signal. The event set a record as one of the largest gatherings of healthcare students for a social cause in the RGUHS Dakshina Kannada Zone.

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News Network
November 29,2025

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New Delhi: Karnataka chief minister Siddaramaiah and deputy CM DK Shivakumar on Saturday put up a dramatic display of unity at a closely watched joint press briefing, firmly dismissing weeks of speculation about a power-sharing tussle within the Congress. With the high command nudging both leaders to sit together and settle the dust, the meeting became a political spectacle, ending with the duo declaring that there was “no confusion, no differences.”

Calling the reports of a rift “manufactured confusion,” Siddaramaiah said the talks had gone smoothly, even joking about their breakfast. “Breakfast was very good. All three of us enjoyed it,” he said. “We want to end this confusion once and for all. For local elections and for 2028, our mission is clear — Congress must return to power. There is no difference between me and DKS, not now, not before.”

He blamed the media for fuelling rumours and reiterated absolute adherence to the party leadership. “From tomorrow, let there be no confusion. What the high command says, we will follow.”

Siddaramaiah also assured that the Assembly session starting December 8 would run smoothly and vowed that Congress would take on the BJP and JD(S) “together.”

Shivakumar echoed the chief minister word for word, stressing loyalty and discipline. “People have given us a massive mandate. It is our duty to deliver,” he said. “This government was formed under Siddaramaiah’s leadership. We both have complete trust in the high command. If they tell me to wait, I will wait.”

He added that the two leaders had discussed strategy for the 2028 Assembly elections. “Whatever the CM says, I agree. We are loyal soldiers of the party. The party may be facing challenges nationally, but we will keep it strong in Karnataka.”

Shivakumar also said Siddaramaiah would soon visit his home for lunch or dinner — another symbolic gesture meant to underline their unity.

Both leaders later posted on social media describing the breakfast meeting as “productive” and focused on “Karnataka’s priorities.”

The BJP, however, rejected the show of camaraderie as “pure bunkum,” accusing Congress of trying to paper over an internal power struggle. But Siddaramaiah and Shivakumar insisted their united front would continue — and that there was “no confusion” within the state leadership.

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coastaldigest.com news network
December 2,2025

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Udupi, Dec 2: A wave of regional pride is sweeping through Udupi district as Shagun S Verma Hegde, a talented Class 9 student from Christ King English Medium High School, Karkala, has been named the captain of the Indian National Team for the Under-15 Girls’ Volleyball Championship.

Shagun holds the unique distinction of being the sole player from Karnataka selected to represent the country in the prestigious international tournament. The championship, organized by the School Games Federation, is scheduled to take place in Shangluo, China, from December 3 to 13, where Shagun will lead the national squad.

A Remarkable Journey to the Top

Shagun’s selection is a testament to her dedication and exceptional skill on the court. Her journey included several rigorous rounds of selection:

•    She was the only player from Udupi district to qualify for the state-level selection camp.

•    Out of eight players from Karnataka who advanced to the national selection camp in Pune, Maharashtra, Shagun was the only one to secure a place in the final national squad.

•    The national camp saw participation from approximately 200 players, which was shortlisted to 23. Shagun not only made the final cut but was also ranked as the second-best player overall, solidifying her leadership role.

Shagun, who is the daughter of Sandesh Verma and Shruthiraj of Kallotte, Karkala, has trained under experienced coaches Santosh D’Souza, Jeevan D’Silva, Jairaj Poojary, and Ramesh. Her selection as the team captain has brought profound honour to her family, school, the Udupi district, and the entire state of Karnataka.

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