Two Public Sector Banks and one general insurance company are expected to be disinvested this year, Finance Minister Nirmala Sitharaman announced during Budget presentation in Lok Sabha on Monday. This will be in addition to the disinvestment of the IDBI Bank.
“In 2021-22 we would also bring the IPO of the LIC this fiscal,” she said. The Central government had announced the stake sale in the LIC during Budget 2020-21.
The government currently owns 100% in the LIC, while it holds around a 46.5% stake in the IDBI Bank. It aims to garner ₹90,000 crore from the listing of the LIC and stake dilution in the IDBI Bank in the next fiscal out of total disinvestment target of ₹2.10 lakh crore.
Ms. Sitharaman said that the strategic sale of the BPCL, the IDBI Bank, the Air India, Shipping Corp, Container Corp and other disinvestments would be completed in 2021-22, in spite of COVID-19. The amendments necessary to implement these would be submitted to the House in this session itself, she said.
Indicating that the disinvestment process was in full swing, the Minister said that the Niti Aayog had been asked to come up with the list of companies that may be disinvested next.
“Idle assets will not contribute to Atma Nirbhar Bharat,” she said, adding “I have estimated receipts of ₹1.75 lakh crore from disinvestment in 2021-22.”