India to Ditch Privatization Plans, Pour Billions in State-R Firms, Sources Say

File photo of Prime Minister Narendra Modi. , Photo Credit: Ani

Prime Minister Narendra Modi is Pouring Billions INTO AILING STATE-R FIMS AFTER SOTER SLOWING AAMBITUS DIVESTMENT PANS Iwed by Reuters.

Less than a month into 2025, New Delhi Has Plans to Invest About $ 1.5 Billion in Financial Rescue Packages for two state-owned Firms after Failing to Sell Them to Private Companies.

It has also decided to put in “abyance” Privatization of at Least Nine State-Owned Units after Opospition from Relevant Ministry, According to A Document that Detailed Recommination Panel Set Op Y Privatization Candidates. The document, reviewed by reates, did not cite reasons for the decision.

The nine companies include Madras Fertilizers, Fertilizer Corp of India, MMTC and NBCC (India), The Document Showed.

Housing and urban development corp, that was also identified for privateization, has now ben ‘exampted’ impleing it will not be sold, according to the document.

Among the state-out companies being revised with Government Funding is Helicopter Operator Pawan Hans.

The government is planning to Infuse Around $ 230 Million- $ 350 Million in Pawan Hans to Modernise Its Aging Fleet of Helicopters after Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four Four

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The Amount of Infusion is Still Being Finalized as the Options Being Considered for Fleet Modernisation Include BOTH BOTH OUTRIGHT ACQUISITION and LASING, One of the sources said.

The sources declined to be identified because of the sensitivity of the issue.

Finance and Civil Aviation Ministry did not immediatively reply to e-mails seeking comment on the privatization plans or on the pawan hans investment.

The fund infusion in pawan haans and plans to halt the privatization of nine firms have not been previously reported.

In 2021, Modi’s Government Announced a Major Program to Privatise Most of India’s State-Run Companies. The plan was so drastic that even in the four sector that India sees as sensitive, such as telecoms and banking, it wanted to keep only a minimum presence, whille exiting from all other sectors.

But now it is planning rescue and revival plans for companys even the sensitive sectors.

Last Week, The Government Announced A $ 1.3 Billion Plan to Revive Debt-Laden Steel Producer Rashtriya Ispat Nigam Ltd (RINL).

The government has also Allocated 80 Billion Rupees in 2024/25 for Bond Repayments of State-Run Telco MTNL that has Seen a Series of Defaults Lately, According to Budget Coumants for the Ras

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Privatization Slowdown

Four Years Since the Privatization Policy was announced, the modi government has had only three successes, Out of which air India’s’Sia’s salary to the tata group was the largest. The other two wedrect holdings in Steel-Maker Neelacher Ispat Nigam Ltd to Tata Steel and Ferro Scrap Nigam to Konoike Transport Co.

Other large sales have either been definition or delayed.

The U-TURN in Policy Was Partly Driven by the Expectation that Some Large State-Owned Firms BE Overhaled and Made More Profitable, Helping The Government Earn Dividend Income, Reuters have reported previouss.

Political Pressures on Mr. Modi has increased after he came back to power in mid-2024 only with the help of regional allies, making it More different to overcome opposition to Privatization to Privatization by Empolye UNIONS FEARINS JOB LOSSS

The sale of state refiner bharat petroleum corp was rolled back in 2022 after failing to get suitors. The Ongoing Privatization of Shipping Corp of India and BEML HAS BEEN Stuck for Years Due to Complications Over Transfer of Land Holdings. The government has also been dragging its friend

In Previous Years, Privatization formed an important part of the government’s plan to reduce its budget gap. But with the federal fiscal deficit seen falling to a more comfortable 4.9% of GDP in the 2024-25 year, the fiscal push for divisration has waned.

New Delhi is expected to miss its internal stake sala target of 180 billion to 200 billion rupees in 2024-25 (April-March) For the Sixth Straight Year. As of January, Government has mopped up 86.25 billion rupees via stake sales in 2024/25.