The center earns 7,646 cr in divestment revenue so far in FY21; The sale of LIC participation will take place this year
The central government realized ₹7,645.70 crore as divestment revenue so far in the current fiscal year. This represents 4.37% of the projected divestment budget for the 2021-2022 financial year, which was set at ₹1,75,000 crores.
“The Provisional Budget (BE) for divestment in 2021-2022 has been set at ₹1,75,000 crores. Until now, ₹7,645.70 crore (as of July 14, 2021) has been realized as divestment revenue in the current fiscal year. Several divestment operations are expected to be finalized during the year, “Minister of State for Finance Bhagwat Kishanrao Karad told Lok Sabha on Monday.
In written response to a question about divestment receipts from Lok Sabha MP Satyadev Pachauri, Karad said the central government would complete the public issuance of Life Insurance Corporation of India during the year.
“The initial public offering (IPO) of the Life Insurance Corporation of India (LIC) is expected to be finalized during the year,” said Karad.
The government had issued a tender to appoint investment bankers and legal advisers for the insurance major’s IPO and subsequent listing last Thursday. In inviting investment bankers to bid, the finance ministry said the potential size of the IPO should be much larger than any previous issue.
Center is banking on the public issue LIC, as well as the sale of stakes in Air India, BPCL and a number of other state-owned companies, to achieve its divestment target for the current year. Proceeds from the sale are expected to be a boost to the chess board after severe financial disruption from the pandemic and economic downturn before it.
In her budget speech earlier this year, Finance Minister Nirmala Sitharaman said the strategic divestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, among others, and LIC’s IPO would be completed in fiscal year 2021-2022.
Never miss a story! Stay connected and informed with Mint. Download our app now !!