Two PSBs, one general insurance company to be disinvested

The government has pegged its target for disinvestment for FY 2021-22 at Rs 1.75 lakh crore. A major announcement made by Finance Minister Nirmala Sitharaman was that the government will privatise two public sector banks other than IDBI Bank. One general insurance company will also be privatised in the coming fiscal.

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Existing CPSEs, Public Sector Banks and Public Sector Insurance Companies to be covered under it.

Two fold classification of Sectors to be disinvested:

Strategic Sector: Bare minimum presence of the public sector enterprises and remaining to be privatised or merged or subsidiarized with other CPSEs or closed. Following 4 sectors to come under it – Atomic energy, Space and Defence, Transport and Telecommunications, Power, Petroleum, Coal and other minerals, Banking, Insurance and financial services.

Non- Strategic Sector: In this sector, CPSEs will be privatised, otherwise shall be closed.