Budget Announcements 2021: Finance Minister Nirmala Sitharaman On monday Budget presentation And made big announcements in the area of disinvestment. A major important announcement has been that the government has announced an initial public offering of insurance company LIC i.e. IPO in 2021-22.
The Finance Minister said that the government is going to speed up the disinvestment process in FY 2022. A target has been set to achieve about 1.75 lakh crore rupees from disinvestment. He informed that the disinvestment process has been completed in all the public undertakings like BPCL, Air India, IDBI Bank, Bharat Earth Movers Limited, Ispat Nigam.
The government has intensified the identification of strategic and non-strategic PSUs. Disinvestment of public sector undertakings except four will be expedited. There will also be incentive for disinvestment of PSUs in the states. Disinvestment will be done this year in two banks in the financial year. Disinvestment will be done in a general insurance company. The government has set a target of achieving Rs 1.75 lakh crore from disinvestment in the financial year.
Sitharaman said that NITI Aayog has been asked to work on the next list of central public sector companies for strategic disinvestment. He said that a special unit (SPV) will be created for monetization (sale / lease) of the land owned by the central public sector undertakings. Finance Minister Sitharaman had targeted to raise Rs 2.1 lakh crore from privatization and sale of minority stake in public sector companies in his last 2020-21 budget.
Let us know that the government has so far been able to raise Rs 19,499 crore in the current financial year from sale of minority stake in central public sector undertakings and repurchase shares.