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Budget 2021: Govt sets lower disinvestment target of Rs 1.75 lakh crore for FY22

Budget 2021: Govt sets lower disinvestment target of Rs 1.75 lakh crore for FY22

Besides IDBI Bank, the government would privatise two public sector banks and one general insurance company in the year, Sitharaman said.

Finance Minister said strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, Pawan Hans, Air India, among others, would be completed during the year. Finance Minister said strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, Pawan Hans, Air India, among others, would be completed during the year.

The government has set a disinvestment target of Rs 1.75 lakh crore for 2021-22. This is lower than Rs 2.1 lakh crore it hoped to garner from disinvestment in 2020-21.

Adverse market conditions because of the pandemic affected government's disinvestment plans in 2020-21, and it is expected to fall short of the target by a long way.

Presenting the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman said strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, Pawan Hans, Air India, among others, would be completed during the year.

Besides IDBI Bank, the government would privatise two public sector banks and one general insurance company in the year, she said.

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"In 2021-22 we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself," the finance minister said.

"Barring four strategic areas, PSUs in other sectors will be divested. All disinvestments announced so far will be completed in FY22. The NITI Aayog has been asked to work on next list of central public sector companies for disinvestment," she added.

As part of 'Atmanirbhar Bharat' package, the government had last year said that a maximum of four public sector companies in strategic sectors would be allowed, and government-owned firms in other sectors would eventually be privatised.

Check out the highlights of the Budget