Air India, Bharat Petroleum Corporation to be sold by March: FM Nirmala

Finance Minister Nirmala Sitharaman said that the strategic divestment of Air India and Bharat Petroleum is essential for the government to meet its divestment objective of Rs 1 lakh crore for the current fiscal year.

Divestment of Air India-Bharat Petroleum: Finance Minister Nirmala Sitharaman said the government plans to sell the state-run airline Air India and the PSU Bharat Petroleum Corporation (BPCL) oil marketing company by March 2020.

The finance minister said that the strategic divestment of the two state-owned companies is essential for the government to meet its divestment objective of Rs 1 lakh crore for the current fiscal year.

"We are moving forward in both with the expectation that we can complete them this year. Earth realities will develop," Sitharaman told the Times of India.

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The finance minister added that there is "great interest" among investors, which is evidenced in international roadshows prior to the sale of Air India. The government had to abandon the sale of shares of the national operator last year due to the warm response of investors. But it has the income from divestment (which includes strategic sales and public offers) to increase its revenues in a year in which tax collection suggests a possible fiscal slippage.

However, the government has been taking many measures to stop the recession of the economy that manifests itself in many sectors that are struggling, Sitharaman told the news daily. He also said that the captains of the industry had contributed to improve their balance sheets and many of them were also considering new investments.