CEA says Air India’s privatization is going well, confident to complete planned divestments
The government remains confident that the proposed sales of shares in Life Insurance Corporation of India and Bharat Petroleum Corporation Ltd. will be completed. (BPCL) by the end of this fiscal year, Chief Economic Adviser Krishnamurthy Subramanian said on Saturday.
âThe privatization of Air India is going well … two offers have been received. Bharat Oil [privatisation] and LIC registration, we are confident, should take place by the fourth quarter of this year, âDr Subramanian said at the Indian School of Business (ISB) PGPMAX Leadership Summit 2021 in Hyderabad.
Describing the three equity sales as important parts of the â¹ 1.75 lakh crore proceeds that the budget estimated this year from privatization, the chief economic adviser said the company policy focused on the sector private sector was one of the main pillars of the reforms pursued by the government. With less than three to four public sector companies in three or four strategic areas including defense and oil and gas, the rest would be “privatized or taken over so that efficiency gains can occur,” he said. -he adds.
The plan to privatize two public sector banks (PSBs) was also part of the policy. The privatization of the two banks would be really critical given that the PSBs were an indicator of socialism, he said.
âIn 8-10 years India’s economy will be very different and much more efficient than it is today when this process is brought to its logical conclusion,â he said, adding that the year underway would go down in history as a very important year for privatization.
Noting that the idea of ââAtmanirbhar Bharat was based on the private sector and emphasized self-reliance as opposed to the model until 1991 which focused on self-reliance, Dr Subramanian said that the competition brought out the best.
” Change of mentality “
The CEA said there had also been a shift in mindset with the emphasis on ârespecting the private sector rather than chasing the guys out of the private sector; it is something that I feel that I will endure â. The private sector needs to be empowered, he said, saying trade and trade facilitation are part of India’s DNA.
When asked about a V-shaped post-pandemic recovery, CEA said India was the only country to have turned the crisis into an opportunity. âThe V-shaped recovery was really about understanding the fundamentals of economics,â Dr Subramanian said.