Divestment deadline for Pawan Hans may be extended
The on going conflict between Russia and Ukraine Russia-Ukraine may force India to extend deadlines for planned strategic divestments in some major state-run companies like Pawan Hans with potential investors seeking more time to submit bids, said two government officials aware of the developments, reports Guvleen Aulakh for Mint.
The conflict will also likely hit valuations of Bharat Petroleum Corp. Ltd, Shipping Corporation of India, BEML Ltd and Pawan Hans Ltd, among others, that are being lined up for stake sales amid an overall delay in the entire process, the officials said. They said initial signs of a slowdown have already begun to emerge, with deadlines of some of the divestments being extended. This is set to derail the government’s disinvestment plan not only for this fiscal through March but also for the next year as investors remain on edge following growing uncertainty due to the global geopolitical tensions and rising oil and other commodity prices. “Nearly all transactions are in slow mode… investors are taking time because of uncertainties caused by war,” one of the officials said, seeking anonymity.
The second official cited above said while the government was trying to continue engaging with potential investors and bidders, waning investor sentiment has thrown a major spanner in the works. (Source: Mint)