Dipam is conducting a weekly capital review of PSUS to protect growth amid global uncertainty

Amid global uncertainty due to American commercial policy and geopolitical developments, the government is regularly reviewing capital management for all public sector institutions.

“We are reviewing the capital for all PSU units on a weekly basis and working on strategies to isolate our economy from geopolitical risks,” said Hrish Chaoula, Secretary of Investment and Public Asset Department (Dipam).

Highlighting that PSUS represents 15 % of the market value, and he said that the focus is to ensure continuing to meet the features of performance and implement Capex programs to maintain economic growth momentum.

His comments come at a time when customs tariff policies in the United States have created a great insecurity of the local economy. The government’s focus on capitalist spending has been a major growth engine in recent years.

Dipam Secretary also said that the government appointed commercial bankers for potential stock sales in public financial institutions, including the Life Insurance Corporation in India.

“The appointment has been completed. Trade bankers have been appointed for a period of three years, which can be extended for five years.”

However, the details of the transactions for any possible sale were not yet available. “Individual transactions can occur at any time.”

Dipam has put a request for a proposal in February this year, and he called on bids from commercial bankers to help sales of public sector banks and financial institutions.

A possible offer to sell LIC may occur later this year, although the Dipam Secretary refused to comment. The center currently holds a 96.5 % stake in the life giant, after selling 3.5 % in May 2022.