Lockdowns hold up due diligence process; stretch AI, BPCL sell-off plans

Privatisation plans for key state-owned companies such as BPCL and Air India are likely to face delay and may stretch into later part of the year as the Covid-19 pandemic affects mobility of people, disrupting closure of transactions.

The government, however, is confident of pulling through stake sales in National Fertilizers Ltd (NFL) and Rashtriya Chemicals and Fertilizers Ltd (RCF) as per schedule due to the market appetite for fertiliser companies and the “offer for sale” route making it easier to divest, sources said.

“A number of senior and junior levels officials in the Finance Ministry, including DIPAM (Department of Investment and Public Asset Management), are down with Covid-19.