Finance Minister announced that asset reconstruction and management company will be set up for stressed assets of banks
Finance Minister Nirmala Sitharaman in her Budget 2021 speech on Monday announced strategic divestment in two public sector companies and financial institutions, including 2 PSU banks and one insurance company, in the next fiscal year. FM also put disinvestment receipts at ₹1.75 lakh cr for fiscal year beginning April 1, 2021.
Sitharaman said that NITI Aayog to be asked to work on next list of central public sector companies for disinvestment. Two PSBs and one general insurance company to be divested, legislations amendments to be introduced in this session.
As many as 4 CPSEs — Hindustan Aeronautics Ltd (HAL), Bharat Dynamics, IRCTC and SAIL— have come out with offer-for-sale (OFS) this fiscal year. This fetched ₹12,907 crore to the exchequer.
Besides, initial public offering (IPO) by IRFC and Mazagon Dock Shipbuilders together fetched ₹1,984 crore.
Moreover, selling of government stake in private companies held through SUUTI and other transactions garnered about ₹1,837 crore. So far in current fiscal year, 4 state-owned companies -- RITES, NTPC, KIOCL, NMDC-- have completed share buyback which got ₹2,769 crore to the exchequer.
A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available in the open market.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!