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New Delhi [India], February 1 (ANI): The strategic disinvestment of IDBI Bank has moved to the third phase, which means that now the technical and financial bids will be invited, said Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM) on Sunday.
In a post-Budget conversation with ANI, Chawla said, "It may take some time. Before the end of this Financial Year, we will be able to give further information in this matter."
Highlighting the Union Finance Minister Nirmala Sitharaman's budget speech, he said, "The Finance Minister has talked about restructuring, saying how the Non-Banking Financial Companies (NBFCs) can be deployed in the strategic sector. How to enhance their productivity, capital base and to achieve economies of scale."
"Our first effort is with Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), so that a central unified NBFC can be formed in the power sector," Chawla said. He added that such an entity could function as a lead financier for state utilities, distribution companies (discoms), transmission and generation firms, enabling sound and efficient financing.
Responding to the Economic Survey's proposal to reduce government stake to 26 per cent, Chawla said the Survey should be viewed as an ideation document. "If you read it in detail, it talks about alternatives. Already, one-third of enterprises are below 60 per cent equity," he noted.
He further outlined possible future approaches, including redefining government enterprises, adopting strategic partnership models, forming joint ventures, and undertaking restructuring exercises.
"The objective is to retain public control while unlocking public wealth and bringing in minority shareholders," he said.
Notably, in May 2021, the Cabinet Committee on Economic Affairs, gave its in-principle approval for strategic disinvestment along with the transfer of management control in IDBI Bank. (ANI)