India to Privatise State-run Companies and Halt Fresh Insolvencies Amid COVID-19 Pandemic

India said on Sunday it would privatise state-run companies in non-strategic sectors and stop fresh insolvency cases for a year, as the country battles with the economic fallout from the coronavirus pandemic, Reuters reported. A list of strategic sectors will also be announced in which only one to four public sector enterprises will remain, Finance Minister Nirmala Sitharaman said, as part of a slew of measures to kickstart the economy. Indian officials said most of the privatisations would happen in the next fiscal year, starting April 2021. India has been trying to divest parts of state-run companies in sectors ranging from aviation to power to fill its coffers, but it has confronted weak investor sentiment and limited demand. “Such measures have to be done at times the government can get the right price,” said Shriram Subramanian, founder of proxy advisory firm InGovern, adding that the intention was good. Read more