STRATE­GIC DISINVESTMENTS

Assocham Bulletin - - ASSOCHAM -

"pri­vate Eq­uity (PE) and Ven­ture Cap­i­tal( V C) funds with ad­e­quate en­ter­prise or man­age­rial or tech­ni­cal in­vestors in the whole con­sor­tium sort of model can come for­ward to par­tic­i­pate in strate­gic di­vest­ments like Air In­dia", said Mr. Neeraj Gupta, Sec­re­tary, De­part­ment of In­vest­ment and Pub­lic As­set Man­age­ment (DIPAM).

"We are not look­ing only for an air­line to takeover Air In­dia, we have given a small carve out for air­lines on how do­mes­tic air­lines will be treated in terms of el­i­gi­bil­ity in a con­sor­tium but oth­er­wise any­body who has net worth and funds can bid for Air In­dia", said Mr. Gupta. He was speak­ing at the ASSOCHAM An­nual In­dia In­vest­ment Con­fer­ence held on April 19, 2018.

"In all these dis­in­vest­ment ex­er­cises also, we have kept • them tech­ni­cally neu­tral, fi­nance is the main cri­te­ria and your ca­pa­bil­ity to takeover and run such an as­set in fi­nan­cial terms is the main cri­te­ria," he added. He also said that the Union Govern­ment had re­ceived lot of queries from air­lines and non­air­lines for pro­posed di­vest­ment of the na­tional car­rier.

Mr. Gupta also clar­i­fied that there is a thought that VCs can­not make in­vest­ment in such pri­vati­sa­tion or strate­gic dis­in­vest­ment area which is not cor­rect. "You in­di­vid­u­ally may not be but if you see the ex­pres­sion of in­ter­est be­ing in­vited in these cases, the only cri­te­ria is net worth."

Talk­ing about the huge po­ten­tial

for growth in the PE and VC sec­tor, the DIPAM sec­re­tary high­lighted that from 2009 to 2016 the PEs and VCs have grown as a per­cent­age of GDP (Gross Do­mes­tic Prod­uct), be­sides both size and vol­ume of the deals have also grown.

Adding that govern­ment had ad­dressed lot ofis­sues flagged by the PEsand VCs, Mr. Gupta said, "I am not say­ing all the is­sues could have been ad­dressed and there may be more ex­pec­ta­tions on tax and in­cen­tive side but we have to al­ways- re­mem­ber that when we pro­vide a veryvery at­trac­tive, sweet carve-out for one set of in­vestors it has the po­ten­tial of be­ing mis­used and tax is def­i­nitely the ba­sis on which we can main­tain fi­nan­cial dis­ci­pline."

He said that the govern­ment's ap­proach is very clear and thus it is ad­her­ing to fi­nan­cial dis­ci­pline, even fis­cal deficit is be­ing con­tained to tar­geted num­bers and the econ­omy con­tin­ues to have a glide path.

"In last few years, de­spite chal­lenges and trans­for­ma­tional de­ci­sions, the govern­ment has com­mit­ted to con­tinue to fis­cal dis­ci­pline and con­tinue higher growth", he said. "When such an ap­proach is there, other sources of funds in the econ­omy be­come more and more im­por­tant", he added.

In­dia re­mains a fastest grow­ing econ­omy as the govern­ment has un­der­taken var­i­ous ini­tia­tives to build an ecosys­tem which is con­ducive for growth of in­flows from do­mes­tic and for­eign funds.

In­dia re­mains a fastest grow­ing econ­omy as the govern­ment has un­der­taken var­i­ous ini­tia­tives to build an ecosys­tem which is con­ducive for growth of in­flows from do­mes­tic and for­eign funds.

Mr. Neeraj Ku­mar Gupta, Sec­re­tary, De­part­ment of In­vest­ment and Pub­lic As­set Man­age­ment, Min­istry of Fi­nance, Govern­ment of In­dia be­ing wel­comed by Mr. D. S. Rawat, Sec­re­tary Gen­eral, ASSOCHAM.

(L-R) Mr. Su­man Jy­oti Khai­tan, Man­ag­ing Part­ner, Su­man Khai­tan & Co., Mr. Ma­hen­dra Swarup, Chair­man, PEVCAI & Founder, Ven­ture Gu­rukool, Mr. Neeraj Ku­mar Gupta, Sec­re­tary, De­part­ment of In­vest­ment and Pub­lic As­set Man­age­ment, Min­istry of Fi­nance, Govern­ment of In­dia and Mr. D. S. Rawat, Sec­re­tary Gen­eral, ASSOCHAM light­ing the in­au­gu­ral lamp.

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