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Govt sets disinvestment target at Rs 1.75 lakh crore; FY21-22 to witness privatisation of BPCL, Shipping Corp

She said the government will privatise two public sector banks other than IDBI Bank.

SNS | New Delhi |

The government on Monday pegged its disinvestment target for the next fiscal year at Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and one insurance company.

The announcement was made by the Finance Minister Nirmala Sitharaman as a part of the Budget 2021-22. She announced barring four strategic areas, public sector companies in other sectors will be divested. The policy would give a clear roadmap for disinvestment in strategic and non-strategic sectors.

She said the government will privatise two public sector banks other than IDBI Bank. Also, legislative amendments required for LIC IPO would be brought in 2021-22.

She said NITI Aayog has been asked to work on next list of central public sector companies for strategic disinvestment.

The minister said a revised mechanism for fast-tracking closure of loss making PSUs would be worked out and an incentive package would be developed to incentivise states to sell stake in state PSUs.

She assured that the much delayed disinvestment processes of Air India and BPCL among others would be completed in the upcoming fiscal.

To monetise lands owned by CPSEs, a special purpose vehicle (SPV) would be developed. So far this fiscal, the government has garnered Rs 19,499 crore through minority stake sale in CPSEs and share buybacks.

Finance Minister Nirmala Sitharaman had in her previous budget for 2020-21 set a target of raising Rs 2.1 lakh crore from privatisation and sale of minority stakes in state-owned companies. This include Rs 1.20 lakh crore from selling stake in CPSEs and Rs 90,000 crore from stake sale in financial institutions.