Presenting her third Union Budget, Finance Minister Nirmala Sitharaman announced that the government will roll out the IPO for Life Insurance Corporation of India in the next financial year.
"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 in her Budget speech on Monday.
Promising to complete the pending strategic sale of central public sector enterprises, the Finance Minister pegged the disinvestment target for the upcoming financial year at Rs 1.75 lakh crore.
FULL COVERAGE: Budget 2021
"A number of transactions namely BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others would be completed in 2021-22," FM Sitharaman said.
"Other than IDBI Bank, we propose to take up the privatisation of two Public Sector Banks and one General Insurance company in the year 2021-22. This would require legislative amendments and I propose to introduce the amendments in this Session itself," she further added.
In another announcement for the insurance sector, the Finance Minister also increased FDI in the industry to 74 per cent from 49 per cent.
"I propose to amend the Insurance Act, 1938, to increase the permissible FDI limit from 49 per cent to 74 per cent in Insurance Companies and allow foreign ownership and control with safeguards. Under the new structure, the majority of Directors on the Board and key management persons would be resident Indians, with at least 50 per cent of Directors being Independent Directors, and specified percentage of profits being retained as general reserve," Sitharaman said.
FM Sitharaman further added that two public sector banks and one general insurance company will be privatised in 2021-22.