The divestment calendar for FY21 will see some changes because of the chaos arising out of the COVID pandemic, government sources told CNBC-TV18.

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According to the sources, the BPCL divestment is still on the table, although the timelines for Expression of Interest may again get extended based on investor requests.

The sources mentioned above indicated that the govt stands committed to the divestment plan for FY21 and so far, there is no change in the policy stance on strategic as well minority stake sales in state-owned companies. However, the timelines will have to be adjusted depending on the economic impact of COVID.

For instance, the date for Air India EoIs has already been further extended by two months to June 30 following requests from investors.

On March 31, the government had extended the BPCL EoI timeline as well from May 2 to July 13, after calling for bids on March 7.

Consequently, the govt may have to walk a tightrope in completing Air India divestment in H1, while BPCL stake sale is expected to spill over to H2.

The government is also working on inviting bids for Shipping Corporation and Container Corporation, which, according to the sources, will happen soon.

Work is underway on the listing process for Life Insurance Corporation as well. CNBC-TV18 learns that the government may soon invite bids for the appointment of transaction advisors, legal advisors, and valuation advisors for the listing of LIC. The sources reiterated that there’s no change in the government's decision to list LIC.

However, the government may have to do a “deep dive” into LIC's balance sheet as a run-up to the actual listing and the lengthy process that will have to be followed may just push the initial public offer to the next fiscal .

“There is a possibility that LIC IPO may spill over to next financial year due to the long drawn process," said the sources.

Along with the appointment of advisors for LIC listing, and the valuation process that will get kickstarted which will be most critical, the government will be readying the cabinet note to introduce amendments to the LIC Act. Amendments to the Act may need approval of both Houses of Parliament .

First Published:Apr 29, 2020 11:32 AM IST