BPCL, Air India, CONCOR divestment unlikely in FY20 : Source

BPCL, Air India, CONCOR divestment unlikely in FY20 : Source

The government may be unable to complete the strategic divestment of Bharat Petroleum Corporation (BPCL), Air India and Container Corporation of India (CONCOR) by March-end.
A government official told “All three divestments are at different stages, but going on very strongly. However, all three are unlikely to be completed in FY20,”

“The road shows have happened. The next stage is getting the financials in place," the official added.

The government plans to sell BPCL, logistics firm CONCOR and debt-laden Air India before the end of FY20. It plans to offload its entire 100 percent stake in Air India. In BPCL, it will divest its 53.29 percent stake, and in COCNCOR, it will sell 30.8 percent of its 54.8 percent stake.

They may result in the government missing its FY20 divestment target of Rs 1.05 lakh crore. Till date, it has managed to raise only Rs 17,364 crore. Media reports peg the shortfall at Rs 40,000-50,000 crore if the divestments fail to happen.

The shortfall will also affect the government’s ability to meet its FY20 fiscal deficit target of 3.3 percent of gross domestic product (GDP).