India’s plan to divest state-owned companies is ‘back on track’, says top official

India’s plan to divest state-owned companies is ‘back on track’, says top official

India is "back on track" in its efforts to divest state-owned companies following delays due to the coronavirus pandemic, according to a top official from the Ministry of Finance. 

The country has a disinvestment target of 1.75 trillion rupees (about $24 billion) for the next fiscal year which starts on April 1, Finance Minister Nirmala Sitharaman revealed during her budget announcement last month.

This means the government will divest by selling state-owned assets to the private sector, or listing them on the stock exchange.

"A lot of preparation work actually was underway, but we had interruptions due to Covid. The disinvestment plan is back on track," Tuhin Kanta Pandey, secretary at the department of investment and public asset management, said in an interview on CNBC's "Streets Signs Asia" on Tuesday.

 "We have several transactions lined up and we are hopeful with the government's firm policy on privatization, that these deals will move forward this year," he added.

In her budget speech, Sitharaman highlighted the Indian government aims to privatize state-owned companies such as national carrier Air India and oil and gas giant Bharat Petroleum Corporation, among others. She also proposed the privatization of two public sector banks and one general insurance company.

Even though the aviation industry has been