Strategic disinvestment of companies including BPCL, Air India, Pawan Hans, IDBI Bank, Container Corporation of India to be completed in 2021-22, Sitharaman has announced. Government will ask Niti Aayog to start working on identifying next list of companies for strategic sale stated the FM Nirmala Sitharaman in her budget speech.
Announcing its version of the bad bank, the government will set up an Asset Reconstruction and Management Company for Stressed Assets to take over bad loans she said .
Alongside, a Rs 20,000 crore equity infusion has been announced for public sector banks. These measures are expected to strengthen the state-owned banks and hasten the process of clean up of their balance sheet she stated .
Government is committed to welfare of farmers, says FM amid protests from opposition leaders. “”MSP has gone through a sea change. Over Rs 75,000 crore paid to wheat farmers in 2020-21, 43.36 lakh benefited from this” Nirmala said.
The government plans to further strengthen the NCLT framework and continue with the e-court system for faster resolution of bad debts. A separate framework for MSMSe will also be made by the government she added.
Why the move -With the government imposed moratorium on admission of new cases likely to end by March 31, a number of MSMEs, which have not been able to earn enough during the fiscal are likely to be taken to insolvency by their creditors. The separate framework may help MSME owners avoid losing their company while continuing to pay the debt she explained.
The government plans to sell part of its holding in Life Insurance Corporation of India through an initial public offering in the coming year. An amendment to the existing Act to facilitate the public offer, says FM Nirmala Sitharaman.
