Union Budget 2021-22: FM Sitharaman makes key announcements on LIC IPO, disinvestment

Presenting Union Budget 2021, Finance Minister Nirmala Sitharaman on Monday (Feb 1) announced that the government has set a disinvestment target of Rs 1.75 lakh crore for 2021-22 which is lower than Rs 2.1 lakh crore it hoped to garner from disinvestment in 2020-21.

Sitharaman said that the strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, Pawan Hans, Air India, among others, would be completed during the year.

Besides IDBI Bank, the government would also privatise two public sector banks and one general insurance company in the year, she added.

“In 2021-22 we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself,” Sitharaman said.

Unveiling the Disinvestment/Strategic Disinvestment Policy, Sitharaman said four sectors — Atomic energy, Space and Defence; Transport and Telecommunications; Power, Petroleum, Coal and other minerals; and Banking, Insurance and financial services — would be strategic sectors.

“Barring four strategic areas, PSUs in other sectors will be divested. All disinvestments announced so far will be completed in FY22. The NITI Aayog has been asked to work on the next list of central public sector companies for disinvestment,” she added.