Minister of State for Finance Bhagwat Kishanrao Karad told Lok Sabha that the Centre will complete the process for LIC IPO during the year
The central government has realised ₹7,645.70 crore as disinvestment receipts so far in the current financial year. This amounts to 4.37 per cent of the budget estimate for disinvestment in financial year 2021-22, which has been set at ₹1,75,000 crore.
"The Budget Estimate (BE) for disinvestment in 2021-22 has been set at ₹1,75,000 crore. So far, ₹7,645.70 crore (as on July 14, 2021) has been realised as disinvestment receipts in current financial year. Several disinvestment transactions are expected to be completed during the year," Minister of State for Finance Bhagwat Kishanrao Karad told Lok Sabha on Monday.
In written reply to a question on disinvestment receipts by Lok Sabha MP Satyadev Pachauri, Karad stated that the central government will complete the public issue of Life Insurance Corporation of India during the year.
The government had invited bids to appoint merchant bankers and legal advisors for the IPO and subsequent listing of the insurance major on Thursday last week. Inviting bids from merchant bankers, the Finance Ministry had said the potential size of the IPO is expected to be far larger than any previous issue.
Centre is banking on the LIC public issue, along with stake sale in Air India, BPCL and number of other public enterprises, to meet its disinvestment target for the current fiscal. The proceeds are expected to be a shot in the arm for the exchequer after severe financial disruption due to the pandemic and an economic slowdown before that.
In her Budget speech earlier this year, Finance Minister Nirmala Sitharaman had said that strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, among others, and IPO of LIC would be completed during fiscal 2021-22.