Finance Minister Nirmala Sitharaman in her Union Budget 2021 speech on Monday introduced strategic divestment in two public sector corporations and monetary establishments, together with two nationalised banks and one insurance coverage firm, within the subsequent fiscal yr. Ms Sitharaman additionally put disinvestment receipts at ₹1.75 lakh crore for fiscal yr starting April 1, 2021.
In an interview after the Union Budget to Doordarshan, she mentioned, “We need more SBIs. But some banks (public sector) simply don’t get well despite pumping more money into them.”
The title of the 2 nationalised banks and the agency is but to be revealed.
“Inspite of the coronavirus pandemic, we kept working towards strategic sale of BPCL (Bharat Petroleum Corporation Limited), IDBI Bank, Air India, which will be completed in 2021-22,” she mentioned.
Ms Sitharaman mentioned that idle belongings is not going to contribute to “Atmanirbhar Bharat” or self-reliant India. “A revised mechanism will be introduced for timely closure of loss making nationalised banks,” she added.
When requested if it could be straightforward to privatise PSU banks given India’s historical past of nationalising banks, she mentioned, “We will reason it out. We will allow them to scale up.”
Sitharaman mentioned NITI Aayog has additionally been requested to provide you with the record of corporations which may be disinvested within the subsequent spherical.