new Delhi. Finance Minister Nirmala Sitharaman presented the General Budget 2021 in Parliament on Monday. In the first budget of this decade, the central government aims to raise a quarter to two lakh rupees through disinvestment and this is about 35 thousand crores less than the last financial year. Along with this, the Finance Minister also revealed his plan to raise this amount, which shows that the government will now privatize banks. Let us know who will be privatized under the new budget and in which IPO will be brought.
The central government announced on Monday that two public sector banks and a general insurance company would be privatized. Along with this, LIC will be listed as part of consolidation in banking and insurance sectors in the financial year 2021-22. Along with this, the government has also announced recapitalization of Rs 20,000 crore of PSU banks.
What does privatization of PSU banks mean?
The finance minister said in his budget speech that the government will start the process of privatization of two public sector banks in the coming financial year. However, he did not disclose the name of the banks. The government currently holds a majority stake in public sector banks. The government is expected to bring down the stake in the two PSU banks to below 51 per cent or sell the entire stake to private ownership.
What does LIC IPO mean for the government?
Finance Minister Nirmala Sitharaman has said that the Life Insurance Corporation (LIC) will go for an initial public offering (IPO) in 2021-22. It is likely to be a mega IPO with assets worth Rs 32 lakh crore under LIC’s management. The government hopes to get a huge amount from the LIC IPO, making the life insurance company one of the largest companies in market capitalization. LIC has already started work for the IPO.
Their name is also included
According to the report, the government may also put a stamp on the disinvestment of Bharat Petroleum Corporation Limited (BPCL), Air India, Container Corporation of India (CONCOR), Shipping Corporation of India (SCI) in the next financial year. At the same time, given the boom in the stock market, the central government may take steps to sell its stake in some Central Public Sector Enterprises (CPSE) by Offer for Sale (OFS).
Who expected to get what amount
Selling stake in BPCL can bring about 60 thousand crores to the central government account. It is being told that the government can sell its 52.98 per cent stake in the second largest oil company in the country. The government has announced that BPCL’s strategic buyer will also be given management control of the company.