Finance Minister Nirmala Sitharaman announced that the government will introduce the initial public offer (IPO) of Life Insurance Corporation in in financial year 2022. The legislative amendments to this effect will be launched in Parliament in the Budget session, the finance minister added, as the government will need Parliamentary approval to facilitate the sale of the LIC stake.
"We would also bring the IPO of LIC in 2021-22, for which I am bringing the requisite amendments in this session itself," the Finance Minister Nirmala Sitharaman said in her Budget speech.
The government has set a divestment target of Rs 1.75 lakh crore for FY22. In FY21, the government had budgeted raising Rs 2.1 lakh crore through divestments, but failed to achieve the target as disinvestments of BPCL and LIC could not be completed during the year.
In a related development, the finance minister also said that the government will complete divestment of BPCL, CONCOR and SCI in FY22. Moreover, the government will privatise two public sector banks and one general insurance company.