The government has moderated its divestment target for financial year 2021-22, after having set a lofty target in the previous year and missed it. The central government aims to garner Rs 1.75 lakh crore through divestments in 2021-22, according to Union Budget documents. In FY21, the government had budgeted to raise Rs 2.1 lakh crore through divestments but fell short. According to the Departm
Some of the big-ticket divestments planned last year, such an initial public offering of Life Insurance Corp. of India, will conclude this year, helping the government raise resources, Finance Minister Nirmala Sitharaman said in her budget speech. Other sales which will be completed this year are Bharat Petroleum Corp., Shipping Corporation of India, Clearing Corporation of India Ltd., BEML Ltd.
Pawan Hans Ltd., among others, the minister said. The finance minister also said apart from IDBI Bank Ltd., the divestment of two other state-run lenders and one general insurer has been proposed in FY22. She didn’t specify the name of the companies.
In addition, the government has approved a new public sector enterprises policy, which is intended to drive privatisation. As part of that policy, the government is identifying strategic sectors, where it will retain a maximum of four public sector enterprises. In other sectors, it will steadily privatise government units.