LIC IPO Latest News: Union Finance Minister Nirmala Sitharaman on Monday presented the Union Budget 2021-22 and made a big announcement for much awaited and talked about LIC IPO. While delivering Budget 2021 speech, FM Nirmala Sitharaman confirmed that legislative amendments required for LIC IPO would be brought in 2021-22.

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The government on Monday budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and one insurance company, in the next fiscal year.

Unveiling the PSE policy in Budget 2021-22, Finance Minister Nirmala Sitharaman said barring four strategic areas, public sector companies in other sectors will be divested. The policy would give a clear roadmap for disinvestment in strategic and non-strategic sectors.

Sitharaman said, "Strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, among others, would be completed in 2021-22 fiscal year beginning April 1. Also legislative amendments required for LIC IPO would be brought in 2021-22." She added NITI Aayog has been asked to work on next list of central public sector companies for strategic disinvestment.

Sitharaman said a revised mechanism for fast-tracking closure of loss making PSUs would be worked out and an incentive package would be developed to incentivise states to sell stake in state PSUs. To monetise lands owned by CPSEs, a special purpose vehicle (SPV) would be developed.

Finance Minister Nirmala Sitharaman had in her previous budget for 2020-21 set a target of raising Rs 2.1 lakh crore from privatisation and sale of minority stakes in state-owned companies. This include Rs 1.20 lakh crore from selling stake in CPSEs and Rs 90,000 crore from stake sale in financial institutions.

So far this fiscal, the government has garnered Rs 19,499 crore through minority stake sale in CPSEs and share buybacks.