The Centre was set to privatise up to six public sector undertakings (PSUs), including Bharat Petroleum Corporation Ltd (BPCL), BEML, and Shipping Corporation of India, said Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management, on Wednesday. The government will call for financial bids soon.

Addressing the Confederation of Indian Industry (CII) Global Economic Summit 2021, Pandey said India would see the privatisation of five or six PSUs this fiscal year.  Financial bids for  BPCL, BEML, Shipping Corporation, Pawan Hans, Central Electronics, and Neelachal Ispat could be sought in December-January so that they can be closed by March 31.

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The Department of Investment and Public Asset Management, administered by the Finance Ministry, is responsible for the privatization of PSUs, getting them listed through initial public offerings, and reducing the government stake in listed PSUs through offer for sale. The department also monitors share buybacks and dividends paid by PSUs.

Pandey said the initial public offering of Life Insurance Corporation (LIC) was expected in the January-March quarter. LIC‘s IPO would be a very big event for the capital market in the first quarter of 2022, he added.

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The LIC IPO is important for the government as it is on the verge of missing its disinvestment target of Rs 1.75 lakh crore for 2021-22 (April-March). The government has sold Air India to the Tatas and is aiming to complete the handover by December.

The department’s next privatisation target is Bharat Petroleum and taking LIC public.

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Pandey added the government needed cooperation from the private sector as well. They must bid for PSUs that are on sale. “We are moving towards a situation in privatisation where it is not only in policy but also in action,” said Pandey.