Disinvestment target at Rs. 1.75 trn

New Delhi: The government on Monday budgeted Rs 1.75 lakh crore from stake sale in public-sector companies and financial institutions, including two PSU banks and one insurance company, in the next fiscal year.

Unveiling the PSE policy in Budget 2021-22, Finance Minister Nirmala Sitharaman said barring four strategic areas, public-sector companies in other sectors will be divested. The policy would give a clear roadmap for disinvestment in strategic and non-strategic sectors. She said strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, among others, would be completed in 2021-22 fiscal year beginning April 1.

Also legislative amendments required for LIC IPO would be brought in 2021-22. She said NITI Aayog has been asked to work on next list of central public sector companies for strategic disinvestment. Sitharaman said a revised mechanism for fast-tracking closure of loss making PSUs would be worked out and an incentive package would be developed to incentivise states to sell stake in state PSUs.