Election shadow over disinvestment agenda; Balmer & Lawrie selloff hangs in balance
By Our Special Correspondent
New Delhi, April 18: The disinvestment agenda of the government is now largely derailed as the election year now weighs on the government. Over 16 months have gone by since the privatization of Air India, but there appears no divestment candidate on the horizon.
The ruling Bharatiya Janata Party (BJP) is wary of the disinvestment agenda being vulnerable to political slugfest in the election year. “By and large there may be least scope for any disinvestment in the last year of the second term of the Modi government. Also, the fiscal position of the Central government is not stressed enough for the Finance Ministry to take the political risk in the election year,” said a senior official.
Even the low-lying disinvestment fruit such as Balmer & Lawrie appears now a tough call for the government to press ahead with selloff. “The Opposition is dragging the Modi government to the charges of crony capitalism with allegations over Adani group favoured in selloff of the profit making airports. The Unions active in the PSUs are now in active mode to cash in on the prevailing political atmosphere in the country to derail the disinvestment agenda of the government,” said a senior official of one of the shortlisted PSUs for disinvestment.
Emboldened by the unrelenting Congress attack on the government over the issue of Adani group, added the official, some of the Boards of the PSUs on the disinvestment list are even challenging the valuation done by the DIPAM, which is tasked to carry out the exercise of hiving off the government holdings.
Recently, the management of Balmer & Lawrie, which is engaged in chemical, petroleum, logistics, ticketing and hospitality sectors, had also challenged the Rs 1600 crore valuation arrived at by the DIPAM. The PSU is said to be the low-hanging fruit in the disinvestment list. It’s being eyed by the corporate heavyweights because of its strength in logistics.
Even the affiliates of the Rashtriya Swayam Sewak Sangh (RSS) are cautioning the government against selling off the PSUs at throwaway prices. “It will be too tough for the government to go ahead with disinvestment this year, because the ruling dispensation is too wary now of the Opposition attack,” added the official.
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