PSU Bank: The government on the way to the privatization of the PSU bank: Sources

The government is on track with the privatization of two public sector banks (PSBs) and will take appropriate action in the coming months, sources said. In the Union budget for 2021-22, the government announced its intention to undertake the privatization of two PSOs during the year and approved a policy of strategic divestment from public sector enterprises.

According to sources, the government is committed to privatizing two public sector banks and it is on track.

In addition, sources also said that the divestiture of BPCL was also on the map and new offers would be invited.

The government had to cancel the sale as only one bidder remained in the fray, sources said.

The government had planned to sell its entire 52.98% stake in Bharat Petroleum Corporation Ltd (BPCL) and invited bidders to express their interest in March 2020. At least three bids were submitted in November 2020, but it only one remains after the others are removed. the race.

On the strategic sale of

(), sources said, there are issues and the process would be undertaken once these are resolved.

Cabinet in November 2019 had approved the strategic sale of a 30.8% stake, as well as management control, in Concor over the government’s 54.80% stake. The government will retain 24% of the capital after the sale, but without any right of veto.

Government think tank NITI Aayog has already proposed two banks and an insurance company to the Core Group of Secretaries on Disinvestment for privatisation.

According to sources, Central

and are probably candidates for privatization.

In line with the process, the core group of secretaries, led by the Cabinet Secretary, will send their recommendation to the Alternative Mechanism (AM) for its approval and possibly to the Cabinet led by the Prime Minister for the final green light.

Members of the Core Group of Secretaries include the Secretary for Economic Affairs, the Secretary for Revenue, the Secretary for Expenditure, the Secretary for General Affairs, the Secretary for Legal Affairs, the Secretary for the Department of Public Enterprises, the Secretary for the Department of Investment and Public Assets Management (DIPAM) and a secretary of the administrative department.

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