Coronavirus: Govt’s asset sale of LIC, Air India, BPCL to be delayed
The coronavirus outbreak has thrown the government’s asset sale programme almost out of the window and an ambitious target of Rs 2.1 lakh crore for 2020-21 stares at a revision. In addition, the Centre is also set to miss the current year target of Rs 65,000 crore, which was revised downward.
The sale of Air India, when global aviation has taken a huge hit, or Bharat Petroleum Corporation ltd (BPCL), when oil prices have crashed to a historic low, appears almost impossible in the next four to six months.
The government had earlier this month invited bids to sell its majority stake in BPCL. Based on the current market capitalisation of Rs 87,388 crore, the government’s stake of 52.98% was valued at around Rs 46,300 crore. But the slump in oil prices post Saudi Arabia’s plan to shore up production, has rendered oil companies less competitive.
