Union Budget 2021: Government to launch LIC IPO in FY22
In a major disinvestment push, Finance Minister Nirmala Sitharaman on Monday announced that the government plans to take control of two public sector banks and one general insurance company for stake sale in 2021-22. She added that the government will launch Life Insurance Corporation's (LIC) initial public offering. The government's disinvestment revenue target is Rs. 1.75 lakh crore for the upcoming financial year.
Disinvestment of BPCL, Air India to be completed soon
The Finance Minister disclosed that a policy has already been approved by the government for disinvestment in all non-strategic and strategic sectors. "Strategic disinvestment of companies including BPCL, Air India, Pawan Hans, IDBI Bank, Container Corporation of India to be completed in 2021-22. The government will ask NITI Aayog to start working on identifying the next list of companies for strategic sale," she added.
FDI in insurance sector increased to 74%
Moreover, Sitharaman increased the foreign direct investment (FDI) limit in the insurance sector from 49% to 74%. Reacting jubilantly, shares of insurance companies rose. At the time of publishing, the shares of HDFC Life swelled by 1.56% and that of ICICI Prudential jumped by 2.85%.
FM proposed the amendment of Insurance Act 1938
I propose to amend the Insurance Act 1938 to increase the permissible FDI limit from 49% to 74% in insurance companies and allow foreign ownership control with safeguards: Finance Minister Nirmala Sitharaman. #Budget2021 pic.twitter.com/c9WHDH4CQ2— ANI (@ANI) February 1, 2021