Centre’s divestment strategy: PM Narendra Modi, FM Nirmala Sitharaman to address webinar on implementation of Budget announcements
As a part of the 'Aatmanirbhar Bharat' package announced in May 2020, the government has lined key areas where bare minimum public sector undertakings will be maintained and the rest will be privatised.
February 23, 2021 / 01:02 PM IST
The government is set to kick off its big disinvestment roadmap for the financial year 2021-22 on February 24, with Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman likely to address a key webinar on the implementation of Budget announcements with regards to disinvestment.
Representatives from 10 key ministries, the Department of Investment and Public Asset Management (Dipam) and experts from the private sector too are expected to attend the meeting.
The Union Budget announced the shedding of the government stake in Life Insurance Corporation of India (LIC) through an initial public offering (IPO). For the next financial year, the government has also lined up privatisation of Air India, Bharat Petroleum Corporation (BPCL), Container Corporation of India (CONCOR), Pawan Hans, NINL and Shipping Corporation of India (SCI).
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The Budget also proposed the monetisation of land and non-core assets of various departments and ministries too. The divestment target for the upcoming financial year was set at Rs 1.75 lakh crore.
As a part of the 'Aatmanirbhar Bharat' package announced in May 2020, the government has lined key areas where bare minimum public sector undertakings will be maintained and the rest will be privatised. The key strategic areas include atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and banking, insurance and financial services.
Both Air India and BPCL are currently under the disinvestment process. While multiple entities have submitted bids for Air India, Anil Agarwal-led Vedanta Group, private equity firms like Apollo Global and I Squared Capital have shown interest in BPCL.
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In what is considered the country’s biggest privatisation so far, the government will be selling its entire 52.98 per cent stake in the company. The stake sale by BPCL on Numaligarh Refinery in the Northeast to state-run Oil India is likely to happen before the BPCL deal.