Modi govt exploring opportunities for more mergers in energy: Dipam secy

The Narendra Modi government is exploring opportunities for further mergers and acquisitions (M&As) among state-owned companies this year, Dipam Secretary Atanu Chakraborty told Business Standard on Saturday.

In some cases, if the need arises, the Centre will restructure public sector undertakings (PSUs) and hive off their divisions, Chakraborty said.

Dipam stands for Department of Investment and Public Asset Management.

“Integration as a strategy will always continue for state-owned companies because we want them to benefit from economies of scale. We are looking at energy, and oil and gas. In some cases, the idea is to improve the value chain, and that could mean demergers. Somewhere if it is not adding to economies of scale, we can look at demerger,” Chakraborty said when asked if the Centre would go for more M&As among PSUs in 2019-20.