We are committed to meeting divestment target for FY22: FM Sitharaman

FM Nirmala Sitharaman

The Modi government has committed itself to meeting the divestment target of Rs 1.75 lakh crore for 2021-22, Finance Minister Nirmala Sithraman said on August 12.

Speaking at the annual conclave of industry body Confederation of Indian Industry (CII), Sitharaman said that the centre is committed to carrying out privatisation of companies like Air India, Bharat Petroleum, BEML, Shipping Corp, Container Corp, and others this year itself.

"We have shown that our privatisation and divestment initiatives are policy driven, and not discretionary in any manner. This policy driven privatisation will continue with same fervour," Sitharaman said.

The 2021-22 Union Budget has set a divestment target of Rs 1.75 lakh crore, most of which is expected to come from privatisation and the LIC IPO. Sitharaman had also announced that two state-owned banks and a general insurance company will be privatised this year.

However, as Moneycontrol had reported earlier, given that the long, and hitherto untried process of privatising state-owned financial companies has just begun, the centre will look to meet the target by pushing forward with existing plans like Air India, BPCL, Pawan Hans, NINL, BEML and Shipping Corp.

Just a week after tabling the Taxation Laws Amendment Bill in Lok Sabha, Sitharaman said at the CII event that the government had been waiting for the arbitration and tribunal processes related to retrospective tax to reach conclusion.

"Once they reached a conclusion, we set to work. We were waiting for Monsoon Session to repeal retrospective tax," she said. Both Houses of Parliament have cleared the Taxation Laws Amendment Bill, which seeks to end the nine-year old retrospective tax.

Sitharaman also said it was a matter of pride for the government that it was working in a close partnership with the Reserve Bank of India to revive the economy during the COVID-19 pandemic. "For us it is not a case of inflation versus growth. We will attend to inflation and take the necessary steps. But growth is also something we continue to focus on. It is growth which will improve people's lives and create jobs," she said.