The Indian government has sent the first list of 12 public sector undertakings (PSUs) that will be privatized, as declared in Finance Minister Nirmala Sitharaman’s Union Budget 2021 last month. The list includes public sector banks and insurance firms that are part of the government’s aggressive strategy to privatize PSUs in order to reach a disinvestment deadline of Rs 1.75 lakh crores. The submitted list will be considered by the Department of Investment and Public Asset Management (DIPAM) and the Core Group of Secretaries on Divestment (CGD), headed by the cabinet secretary.
The government has tasked the NITI Aayog with the conceptual mission of recommending names for PSUs that should be combined or privatized. Fuel, petroleum, coal, and other minerals, atomic energy, space, defense, finance, insurance, financial services, transportation, and telecommunications are among the strategic sectors in which the Centre will have a “bare minimum” presence, according to the Centre. Autonomous bodies, regulatory agencies, trusts, and growth funding institutions such as the FCI (Food Corporation of India) and the AAI are not included in the list (Airports Authority of India).
Public sector banks (PSBs) in India, unified under the banner of the Union Forum of Bank Unions (UFBU), have called for a two-day strike on March 15 and 16 to protest the government’s move. Bank services, including ATM services, are likely to be impacted, especially at government-owned institutions. You will, however, continue to work with the bank. The State Bank of India (SBI) is attempting to preserve regular activities in its branches. However, according to a BSE filing and Canara Bank, a bank strike called by the Indian Banks Association (IBA) and the United Forum of Bank Unions (UFBU) could interrupt daily operations.
