The 2020-21 Budget was presented on Monday (February 2) in Parliament by Union Finance Minister, Nirmala Sithraman. The Budget was presented as the country battles with the COVID pandemic. Sithramana donned a red and off-white silk saree from the Sambalpur region of Odisha as she arrived at Lok Sabha to deliver her speech.
Among other things, the government set the Disinvestment target was set at ₹ 1.75 lakh crore for the Financial Year 2021-22. Out of this, the government aims to raise ₹ 1 lakh crore through the disinvestment of public sector banks and financial institutions while the rest will be generated by the disinvestment receipts of the Central Public Sector Enterprises(CPSEs).
Sectors that are being targeted for disinvestment:
The government has classified the disinvestment sector into two categories i.e. Strategic Sector and Non-Strategic Sector.
Strategic Sector: Sector which has a bare minimum presence of public sector companies which include:
- Atomic energy, Space and Defence
- Transport and Telecommunications
- Power, Petroleum, Coal, and other minerals
- Banking, Insurance, and financial services.
Non-Strategic Sector: Sectors that have a good presence of public sector companies which include Public Sector Undertaking(PSUs) which will either be privatised or altogether be closed.
Furthermore, the Finance Minister also said the disinvestment of Strategic Disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Limited is expected to be completed by 2021-22.
In addition, the Initial Public Offering (IPO) of the Life Insurance Corporation of India(LIC) will also be offered through requisite amendments.
Sitharaman also proposed forming a special purpose vehicle in the form of a company to monetise idle land belonging to the PSUs.