Finance Minister Nirmala Sitharaman said despite Covid-19, the Government kept working towards strategic disinvestment, during the Union Budget 2021-22 announcement earlier today.
She highlighted that a number of transactions namely
BPCL, Air India,
Shipping Corporation of India, Container Corporation of India,
IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others would be completed in 2021-22.
Other than IDBI Bank, FM said, "we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22. This would require legislative amendments and I propose to introduce the amendments in this Session itself.
Further, in 2021-22, the FM said, "we would also bring the IPO of LIC for which I am bringing the requisite amendments in this Session itself."
"In the AtmaNirbhar Package, I had announced that we will come out with a policy of strategic disinvestment of public sector enterprises. I am happy to inform the House that the Government has approved the said policy. The policy provides a clear roadmap for disinvestment in all nonstrategic and strategic sectors. We have kept four areas that are strategic where bare minimum CPSEs will be maintained and rest privatized. In the remaining sectors all CPSEs will be privatized," Sitharaman said.
To fast forward the disinvestment policy, Sitharaman said, "I am asking NITI to work out on the next list of Central Public Sector companies that would be taken up for strategic disinvestment."
For states, Sitharaman adds, "To similarly incentivise States to take to disinvestment of their Public Sector Companies, we will work out an incentive package of Central Funds for States."
Also, idle assets will not contribute to AtmaNirbhar Bharat. The non-core assets largely consist of surplus land with Government Ministries/Departments and Public Sector Enterprises. Monetizing of land can either be by way of direct sale or concession or by similar means, Sitharaman added, "this requires special abilities and for this purpose, I propose to use a Special Purpose Vehicle in the form of a company that would carry out this activity."
Moreover, the Centre will introduce a revised mechanism that will ensure timely closure of sick or loss-making CPSEs, Sitharaman said in her speech.
FM announced an estimated Rs1.75 lakh cr as receipts from disinvestment in BE 2021-22.