Niti Aayog was given the task to spot the govt owned banks i.e. PSBs ( Public Sector Banks) and insurance companies that may be privatised as facing the losses through the years.
Niti Aayog the think-tank of Government of India on 3rd June, Thursday submitted the name of Public Sector Undertaking(PSUs) to be privatised as they’re facing the losses to the Core Group of Secretaries on Disinvestment.
As per the Budget of 2021-2022, the Centre that’s government is looking to privatise to PSBs and one general insurance company. All the PSBs within the list are going to be privatised by FY 2022, as a part of government plans to disinvest the PSB and aimed toward raising funds.
Disinvestment is a strategy of Government of India, wherein the govt. liquidate/sells its assets within the Public Sector Undertaking(PSUs) partially or fully. The choice to disinvest is especially to reduce the financial burden and bridge the revenue shortfall gap on the government. As the Government of India is facing losses while continuing that specific undertakings.
Besides the Niti Aayog decision is finalizing the list the other members within the high-level-panel are secretary of economics, revenue, expenditure, corporate affairs, legal affairs, Department of Investment And Public Asset Management(DIPAM) secretary and an administrative department secretary.
Following the permission from the Core Group Of Secretaries headed by Cabinet Secretary, giving blessings to Niti Aayog’s list. The names will visit Alternative Mechanism(AM) for its approval and eventually after the AMs clearance, the ultimate nod will be taken by cabinet meeting headed by PM Narendra Modi.
Changes on the regulatory side to facilitate the method of privatisation would start only after the cabinet Approval.
In a recent interaction with Finance Minister Nirmala Sitharaman had stated that “interest of each workers of bank which are likely to be privatised will absolutely to be protected whether their salaries or pay scale or pension all are taken care of.”
FM Nirmala Sitharaman had said that Indian banks within the country needed to be bigger rather like SBI while explaining the rationale intentions behind the such privatisation of some Public Sector Banks. As she aspires that we’d like banks which are visiting rescale and visiting be ready to meet the aspirational needs of the country.
The govt. has budget to ₹175 lakh crore from the stake sales within the Public Sector Undertaking company and Financial institutions, including 2 PSU banks and one insurance company during the current fiscal year i.e. 2021. The quantity is not up to the record budgeted to ₹2.10 lakh crore to be raised earlier from Central Public Sector Enterprises(CPSEs) disinvestment in last fiscal.