The Ministry of Finance took a break on the privatization of at least nine public companies, putting the “outstanding” process, LEUTERS reported on Monday. This decision was made after the opposition of the ministries concerned.
The decision, which has an impact on companies such as Madras fertilizers, Corp fertilizers of India, MMTC and NBCC, highlights a change of strategy while the center turns into rescue and rebirth plans for Public sector units in difficulty (PSU).
The government plans to commit $ 1.5 billion in financial packages for two public companies after omitting selling them. Among them, the helicopter operator Pawan Hans, who should receive $ 230 to 350 million to modernize his aging fleet after four unsuccessful attempts to find a buyer.
Last month, Pawan Hans would have submitted a proposal to the center for having acquired 23 new helicopters to replace his aging fleet comprising 42 helicopters.
Housing and Urban Development Corp (Hudco), which has also been identified for privatization, has now been “exempt”, which means that it will not be sold, according to Reuters.
The distance from privatization is a significant difference in the ambitious policy announced in 2021, which aimed to considerably reduce the role of the state in business. As part of the plan, the government has sought to sell most public companies, maintaining only a minimum presence in sensitive sectors such as bank and telecommunications. However, the resistance of ministries, employee and political unions has blocked progress.
So far, only three main privatization agreements have been concluded. These include the sale of Air India to the Tata group and the challenges of childbirth Neelachal Ispat Nigam Ltd and Ferro Scrap Nigam. Key sales like Bharat Petroleum Corporation, Shipping Corporation of India and Beml remain stuck due to complications such as land transfer problems and the lack of private buyers.
The turn of the center also reflects the hope that the overhaul of public enterprises could make them profitable, providing a constant flow of dividends income. However, this change was also influenced by political realities – Prime Minister Narendra Modi, who returned to power in 2024 with the support of the coalition, faces an increasing opposition to the privatization of regional allies.
