Union Finance Minister Nirmala Sitharaman announced that the Centre will introduce LIC IPO in 2022
Union Finance Minister Nirmala Sitharaman is presenting Union Budget 2021-22 on Monday (February 1). Sitharaman is presenting the Budget 2021 using a 'Made in India' tablet computer. The Budget 2021 is crucial because it comes amid the COVID-19 pandemic.
Sitharaman announced that the Centre will introduce LIC IPO in 2022 and will complete the divestments of Air India by 2022. "For start ups, we are allowing 1% companies to grow without any restriction on their paid up capital. Other than IDBI we plan to take up 2 more banks for disinvestment. LIC IPO will come in 2022. All divestments announced so far, including Air India, BPCL, CONCOR, Pawan Hans, to be completed by 2022," she said.
The Union Minister also announced that Prime Minister Narendra Modi-led government at the Centre has decided to raise the limit for foreign direct investment (FDI) in insurance sector to 74 percent from 49 percent. "We propose to amend the Insurance Act, 1938 and will launch a new investor charter for investor protection. Will launch a securities market code which will include the SEBI Act, the government Securities Act and the Depositories Act. Asset reconstruction and management company to be set up for stressed assets. In FY22, PSU bank recapitalisation plan is of Rs 20,000 crore. We will allow sale of distressed assets to Alternate Investment Funds (AIFs). The NCLT framework will also be strengthened to implement e-courts. All divestments announced so far, are to be completed in FY22," added Sitharaman.
"Over 13,000 km length of roads at a cost of Rs 3.3 lakh cr has already been awarded under Rs 5.35 lakh cr Bharatmala project of which 3,800 kms have been constructed. By March 2022 we'd be awarding another 8,500 & complete an additional 11,000 kms of National Highway Corridor," announced Sitharaman.
"Asset reconstruction company will be set up to take care of NPAs of banks. FDI in ins increased to 74% from the earlier 49%. FY22 Capex is targetted at Rs 5.54 lakh crore v/s FY21's Rs 4.39 lakh crore. Power transmission assets of Rs 7,000 crore is to be transferred to Power Grid InvIT. The Centre will also provide Rs 2 lakh crore to states and autonomous bodies for Capex. We will nudge states for more capital expenditure," she noted.
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 "Budget 2021")
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