IDBI Bank and BEML remain on divestment priority list even as markets make the government jittery

The pace of disinvestment is likely to remain sluggish and the government will focus primarily on offloading stakes in already decided companies like IDBI Bank and BEML, according to people in the know.

The main reason for this is the volatility in the markets. Benchmark indices like the Nifty50 and the BSE Sensex are down almost eight percent in the past six months and there is fear of a recession in Europe and the US, which is likely to hit our markets too in one way or the other. Moreover, the US Fed-led rate hikes by central banks to target controlling inflation may play a spoilsport in market recovery.

People in the know have told Network18 that there isn't much enthusiasm for disinvestment from the political leadership too and the government has not yet decided on alternative names under the new policy of disinvestment.