Union budget 2021: The government has set a target of raising Rs 1.75 lakh crore in FY 2021-22 from stake sale in public sector undertakings and financial institutions. The government intends to sell its stake in two public sector banks and one insurance company in the next financial year. The government had targeted to raise Rs 2.10 lakh crore from the disinvestment of Central Public Sector Undertakings (CPSEs) in the current financial year. However, in view of the circumstances arising out of the COVID-19 epidemic, the government has drastically reduced the disinvestment target for the current financial year to Rs 32,000 crore.
The government has so far been able to raise Rs 19,499 crore in the current financial year from the sale and purchase of minority stake in central public sector undertakings. Out of the total disinvestment target of Rs 1.75 lakh crore in the next financial year 2021-22, one lakh crore rupees will be raised from the sale of government stake in public sector banks and financial institutions. 75,000 crore rupees will come from CPSE disinvestment.
Finance Minister Nirmala Sitharaman announced the disinvestment / strategic disinvestment policy in the Budget 2021-22 on Monday, saying that the four sectors are nuclear power, space and defense; Transport and Telecommunications; Electricity, petroleum, coal and other minerals; And banking, insurance and financial services will enter the strategic sector. The presence of public sector undertakings in strategic areas will be minimal. The remaining CPSEs in the strategic sector will be privatized or merged with other PSUs or will be closed. He said that BPCL, Air India, IDBI Bank, Shipping Corporation, Neelachal Ispat Nigam Ltd., Container Corporation of India, BEML, Pawan Hans and other companies will be disinvested in the next financial year.
Sitharaman said, “Apart from IDBI Bank, we will privatize two public sector banks and one general insurance company in the next financial year. Legislative amendments for this will be brought in this session. ”He said that legislative amendments for the initial public offering (IPO) of LIC will also be brought in the current session of Parliament. Sitharaman said that NITI Aayog has been asked to work on the next list of central public sector companies for strategic disinvestment. To encourage the states to disinvest their PSUs, the government will bring an incentive package for them from the Central Fund.
The Finance Minister said that a revised system will also be brought to shut down the sick or deficit central PSUs in a time bound manner. Sitharaman said that no contribution is going to be made in self-sufficient India by lying idle assets. He said that a special unit (SPV) will be created for monetization (sale / lease) of the land owned by the central public sector undertakings.