Privatization plans of 9 PSUs on hold after opposition from ministries

Prime Minister Narendra Modi is pouring billions into ailing state-run firms after slowing ambitious divestment plans that were intended to reduce the role of the state in business, according to government officials and a document reviewed by Reuters.

- 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 "abeyance" privatization of at least nine state-owned units after opposition from relevant ministries, according to a document that detailed recommendations of a government panel set up to identify privatization candidates.

The document, reviewed by Reuters, did not cite reasons for the decision. The nine firms include Madras Fertilizers, Fertilizer Corp of India, NBCC (India), and MMTC the document showed.

Housing and Urban Development Corp, that was also identified for privatization, has now been exempted, implying it will not be sold, according to the document.