Government on course to privatise 2 public sector banks

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The government had to cancel the sale as only a single bidder was left in the fray, sources said. The government had planned to sell its entire 52.98 percent stake in Bharat Petroleum Corporation Ltd (BPCL) and invited Expression of Interest from bidders in March 2020.

At least three bids came in by November 2020 but only one remains now after the others withdrew from the race.

On the strategic sale of Container Corporation of India (Concor), sources said, there are some issues and the process would be undertaken after those are resolved.

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The Cabinet, in November 2019, had approved the strategic sale of a 30.8 percent stake, along with management control, in Concor out of the government equity of 54.80 percent. The government will retain 24 percent stake post-sell-off but without any veto powers.

The government think-tank NITI Aayog has already suggested two banks and one insurance company to the Core Group of Secretaries on Disinvestment for privatisation.

According to sources, the Central Bank of India and the Indian Overseas Bank are likely candidates for privatisation.

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As per the process, the Core Group of Secretaries, headed by the Cabinet Secretary, will send its recommendation to Alternative Mechanism (AM) for its approval and eventually to the Cabinet headed by the Prime Minister for the final nod.

The members of the Core Group of Secretaries include the economic affairs secretary, revenue secretary, expenditure secretary, corporate affairs secretary, legal affairs secretary, Department of Public Enterprises secretary, Department of Investment and Public Asset Management (DIPAM) secretary and an administrative department secretary.