Nov. 9 (Bloomberg) -- Bank of America Merrill Lynch sees a “big opportunity” in India’s proposed sale of stakes in state- controlled companies, Kevan Watts, the lender’s country head in the South Asian nation, said in an interview.

“We are talking to many people in the government about how we can help with the disinvestment process,” Watts said while attending the India Economic Summit in New Delhi today. He declined to comment on the companies in which the government is considering reducing its holdings.

All profitable state-owned companies must have at least 10 percent of their shares held by the public, Home Minister Palaniappan Chidambaram told reporters in New Delhi on Nov. 5. The government will use the money raised from the sale of shares of state companies for social spending, he said.

To contact the reporters on this story: Subramaniam Sharma in New Delhi at ssharma@bloomberg.net

Last Updated: November 9, 2009 01:19 EST