Presenting the Union Budget 2021-22 on Monday, Union Finance Minister Nirmala Sitharaman announced that the disinvestment target for Fiscal Year 2021-22 is Rs.1.75 lakh crore. As per the Centre's new disinvestment policy, every Public Sector Undertakings in all but 4 strategic sectors will be privatised. She also revealed that the IPO of LIC will be brought soon for which the requisite amendments shall be introduced.
Moreover, she declared that two more Public Sector Banks apart from IDBI and one General Insurance Company will be taken up for disinvestment in 2021-22 itself. The Union Finance Minister said that the NITI Aayog has been asked to work on the next list of central public sector companies for strategic disinvestment. Additionally, Sitharaman stated that an incentive package of Central funds will be given to the states to encourage the latter to speed up disinvestment.
Union Finance Minister Nirmala Sitharaman remarked, "Despite COVID-19, we have kept working towards strategic disinvestment. A number of transactions namely BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, Bharat Earth Movers Limited, Pawan Hans, Neelachal Ispat Nigam Limited among others will be completed in 2021-22. Other than IDBI Bank, we propose to take up two Public Sector Banks and one General Insurance Company in the year 2021-22. This will require legislative amendments and I propose to introduce the amendments in this session itself. In 2021-22, we also propose to bring the IPO of LIC for which I will bring the requisite amendments in this session itself."
"The government has approved the said policy. The policy provides a clear roadmap for disinvestment in all strategic and non-strategic sectors. We have kept 4 areas that are strategic where bare minimum CPSEs will be maintained and rest privatised. In the remaining sectors, all CPSEs will be privatised," she added.
#BudgetDayWithArnab | 'Idle non-core assets do not contribute to Aatmanirbhar Bharat': FM Sitharaman declares govt's intent to divest from public sector except 4 strategic areas; #LIVE updates here - https://t.co/jghcajZuXf pic.twitter.com/qw2YiLjKk0— Republic (@republic) February 1, 2021
Elaborating on the strengthening of the NCLT framework to ensure faster resolution of cases, Sitharaman said, "E-court system shall be implemented and alternative method of debt resolution and special framework for MSMEs shall be introduced. During the current fiscal, we will be launching data analytics, artificial intelligence, machine learning driven MCA 2.1 version to MCA 21 version 3.0. This version 3.0 will have additional modules for e-scrutiny, e-consultation and compliance management."