While presenting the Union Budget 2021-22, Finance Minister Nirmala Sitharaman announced to the public that the government is on its way to bank privatisation in India and will take necessary steps in the upcoming days. But, which banks are on the list of strategic disinvestment? Let’s take a glimpse of the privatisation of public sector banks in India!
Public Sector Bank Privatisation In India
In view of the bank privatisation in India, the Indian Government during the Union Budget 2021-22 had announced that it is committed to the privatisation of two public sector banks in India. The Central Bank of India and the Indian Overseas Bank might be the first to be privatised under the Modi Government. Following the news, the NITI Aayog also opinionated that one insurance company might also come under strategic disinvestment!
According to sources, the Government might soon introduce a Banking Laws Amendment Bill to expedite the bank privatisation in India. If the sources are true, once the Banking laws amendment Bill is passed, the Government shares in the public sector banks will decrease from 51 per cent to 26 percent!
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The Privatisation Of BPCL
Following the path of privatisation of public sector banks in India, the Indian government has also decided to disinvest in BPCL and Container Corporation of India. While the Government was eager to sell its share in the BPCL long ago, bidders left the deal and the Government was forced to cancel the disinvestment deal. Now, the Government has again invited fresh bids for the deal!
On the other hand, the sources said that some issues have hindered the privatisation of Container Corporation of India! Soon after the hindrances are cleared, the bidding process will be undertaken again.
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Few Final Words
Following the announcement about bank privatisation in India by Finance Minister Nirmala Sitharaman on the Union budget 2021-22, the Core Group of Secretaries on bank privatisation was headed by the Cabinet Secretary.
And, followed by the economic affairs secretary, revenue secretary, expenditure secretary, corporate affairs secretary, legal affairs secretary, Department of Public Enterprises secretary, Department of Investment and Public Asset Management (DIPAM) secretary and an administrative department secretary, is all ready to send their recommendation to the Alternate Mechanism (AM) for its approval which will finally find it’s way to the Cabinet headed by the Prime Minister for the final decision!