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Privatisation would be primary mode of PSU disinvestment: MoS Finance

Minister of State (MoS) for Finance Dr Bhagwat Kishanrao Karad has said that privatisation would be the primary mode of PSU disinvestment in the time to come
Privatisation would be primary mode of PSU disinvestment: MoS Finance
Privatisation would be primary mode of PSU disinvestment: MoS Finance
  • The Centre has so far raised Rs 7,645.70 crore from PSU disinvestment against a target of Rs 1.75 lakh crore, Dr Karad told the Lok Sabha
  • The initial public offer (IPO) of Life Insurance Corporation (LIC) of India is planned to be completed during this year, said the minister

New Delhi: While stating that the scope of minority disinvestment in PSUs has declined over years, Minister of State (MoS) for Finance Dr Bhagwat Kishanrao Karad said on Monday that privatisation would be the primary mode of PSU disinvestment in the time to come. “Disinvestment of GOI equity in CPSEs depends largely on market sentiment, investor interest, and market valuation of CPSE stocks. With disinvestment over a period of time, the scope of minority stake sale has declined. Going forward, privatisation would be the primary mode for disinvestment receipts,” Dr Karad told the Lok Sabha.

Centre has so far raised Rs 7,645 crore from PSU disinvestment

The Centre has so far raised Rs 7,645.70 crore from PSU disinvestment against a target of Rs 1.75 lakh crore, Dr Karad told the Lok Sabha. “The Budget Estimate (BE) for disinvestment in 2021-22 has been set at Rs.1,75,000 crore. So far, Rs. 7645.70 crore (as on 14.07.2021) has been realized as disinvestment receipts in current Financial Year. Several disinvestment transactions are expected to be completed during the year,” said Karad in a written response.

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LIC IPO to be completed this year: MoS Finance

The minister also told the Lower House of the Parliament on the first day of the 2021 Monsoon Session that the initial public offer (IPO) of Life Insurance Corporation (LIC) of India is planned to be completed during this year. The statement comes just days after the Department of Investment and Public Asset Management (DIPAM) floated requests for proposals (RfPs) for engaging book running lead managers, legal advisors and share transfer agents for LIC IPO. The move takes the process a step closer to the launch of the IPO, which is going to be India’s biggest public issue so far.

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