India's privatization journey has been a cornerstone of its economic reforms, aimed at enhancing efficiency and reducing the government’s financial burden.
A brief chronological look at key privatization milestones:
In 2000, the government divested Bharat Aluminium Company (BALCO) and Modern Food Industries, marking the start of its privatization wave. BALCO was sold to Vedanta Limited, while Modern Food Industries became a part of Hindustan Unilever.
The following year, CMC Limited joined the Tata fold, eventually merging with TCS in 2016. Several other entities, including Lagan Engineering, Hindustan Zinc Limited, HTL Limited, and Paradeep Phosphates Limited, transitioned to private ownership in 2001.
In 2002, Videsh Sanchar Nigam Limited and ICICI Bank were privatized, with ICICI Ltd. merging into ICICI Bank. Reliance Industries acquired Indian Petrochemicals Corporation Limited, which was fully merged into its operations by 2007.
Privatization continued with Jessop & Company in 2003, later declaring bankruptcy in 2013. IDFC saw reduced government ownership in 2005, followed by Axis Bank in 2007.
The privatization of Air India in 2020 marked a turning point, as the Tata Group took over the national carrier. Neelachal Ispat Nigam Limited followed in 2022 under Tata Steel Long Products.
More recent transitions include the planned IPO of Protean eGov Technologies in 2023 and the full privatization of IDFC via its merger with IDFC Bank in 2024. These milestones reflect India's ongoing commitment to fostering private sector-led growth.
|
Entity |
Year
Privatized/Sold |
Buyer/Group |
Additional
Notes |
|
Bharat
Aluminium Company (BALCO) |
2000 |
Vedanta
Limited |
BALCO closed
in 2002 |
|
Modern Food
Industries |
2000 |
Hindustan
Unilever |
|
|
CMC Limited |
2001 |
Tata
Consultancy Services |
Merged with
TCS in 2016 |
|
Lagan
Engineering |
2001 |
Not specified |
|
|
Hindustan
Zinc Limited |
2001 |
Vedanta
Limited |
|
|
HTL Limited |
2001 |
HFCL |
|
|
Paradeep
Phosphates Limited (PPL) |
2001 |
Adventz Group |
|
|
Videsh
Sanchar Nigam Limited |
2002 |
Tata Group |
|
|
ICICI Bank |
2002 |
Privatized |
Merged ICICI
Ltd. with ICICI Bank |
|
Indian
Petrochemicals Corporation Ltd. |
2002 |
Reliance
Industries |
Merged with
Reliance in 2007 |
|
Jessop &
Company |
2003 |
Ruia Group |
Declared
bankrupt in 2013 |
|
IDFC |
2005 |
Privatized |
Ownership
reduced via IPO in 2005 |
|
Axis Bank |
2007 |
Privatized |
Split from
UTI |
|
Air India |
2020 |
Tata Group |
Sold to Tata
Group |
|
Neelachal
Ispat Nigam Limited |
2022 |
Tata Steel
Long Products |
|
|
Protean eGov
Technologies |
2023 (planned
IPO) |
Public |
Stake sale
through SUUTI, IDBI Bank, Union Bank, SBI via IPO |
|
IDFC |
2024 |
Privatized |
Merged with
IDFC Bank |