Finance Minister Nirmala Sitharaman on Monday said two public sector banks (PSBs) and one general insurance company, besides IDBI Bank, will be divested in FY2022. The Minister has put disinvestment receipts at Rs 1.75 lakh crore for the fiscal year beginning April 1, 2021.

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"Barring four strategic areas, PSUs in other sectors will be divested. Two PSBs and one general insurance company to be divested," Sitharaman said. The legislation amendments will be introduced in this session, the minister added.

The minister said the NITI Aayog will be asked to work on the next list of central public sector companies for disinvestment. "The government will have a very few companies on the four sectors. We have done a lot of detailed homework. Should have our recommendations fairly quickly. The disinvestment number crunching is done and taking ministries on board is underway," said Niti Aayog Chairman Amitabh Kant.

However, there is no clarity on the names of the PSBs to be privatised. PSU Banks that have not been merged: Indian Overseas Bank, UCO Bank, Bank of Maharashtra, Central Bank of India, Bank of India, and Punjab and Sind Bank.

The Finance Minister also increased the Foreign Direct Investment (FDI) limit in insurance companies from 49 percent to 74 percent. "In 2021-22, we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself," Sitharaman said.

Kant said, "Increase in the FDI limit in the insurance sector is a very progressive move."

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First Published:Feb 1, 2021 1:31 PM IST