LIC IPO | Budget Key takeaways: Government to disinvest LIC partially

The government has decided to get LIC listed on the markets. The announcement was made by Finance Minister Nirmala Sitharaman in her Budget Speech.

The move is in line with the government’s aim to look at stake sale in government entities to shore up its finances and allow these PSUs to raise resources. The govt has pegged disinvestment for FY21 at Rs 2.11 lakh crore

Government had set a target of Rs 1.05 lakh crore in FY20. On the strategic sale, the government has already initiated the process for Air India and invited bids from potential buyers for a 100 per cent stake in the National Carrier.

Apart from Air India, other major strategic sales lined up are that of government refiner BPCL, Shipping Corporation and Container Corporation.

The resources unlocked by the strategic disinvestment of CPSEs would be used to finance the social sector/developmental programmes of the government benefiting the public.