In the Budget speech last year, the Finance Minister mentioned that the government would privatise a few PSU banks in due course. There are reports on statements originating from the Ministry that the government would introduce a Bill during the coming monsoon session for enabling it to privatise PSU banks in principle, create provision for outright sale and relax the cap on foreign equity holdings in them. DIPAM is also conducting road shows in the USA to sell IDBI Bank. In this connection, we wish to caution the government about the legal and other far-reaching implications of privatising any PSU bank.
Press Release Date: 30.06.2022 Prelude The Government of India (GoI), a few years ago, had unilaterally enacted the three farm laws, in addition to introducing a Bill to amend the Electricity Act-2003, without taking the States and the farmers’ association into confidence. Since both the farm laws and the Electricity Bill would adversely affect agriculture... Continue Reading →
January 21, 2022 Peoples Commission on Public Sector and Public Services Statement on LIC IPO The Finance Minister in her budget speech in 2021 announced disinvestment of government stake in the Life Insurance Corporation of India (LIC). According to news reports, the LIC IPO Prospectus is likely to be issued in early February 2022. It... Continue Reading →
Why does the government want to privatize the public sector general insurance companies? Download the full presentation here:5. GIC