PSU divestment to fund infra development: FM

Tribune News Service

Mumbai, February 7

The Central Government is pursuing a policy of disinvesting public sector undertakings in order to raise funds for infrastructure development, Union Finance Minister Nirmala Sitharaman said here today.

The minister addressed the media after a meeting with industry leaders and bigwigs from the financial world. She was accompanied by senior bureaucrats from the capital, according to officials here.

“Our commitment towards infrastructure investment is very clearly laid out …it will stimulate consumer demand and create long-term assets,” Sitharaman said.

Referring to the proposed Initial Public Offering (IPO) of Life Insurance Corporation, the minister said listing of a company provides access to finance and unlocks value. “The government is looking at an IPO which will bring retail investors in the picture,” she added.

According to the minister, LIC’s IPO will be made in a transparent manner. Earlier, LIC Chairman MR Kumar told reporters that the IPO would not have any impact on policy holders and employees of the organisation.

Replying to a query, the minister added the controversial bail-in provisions for banks was still on the government’s radar. Under this, deposits belonging to savers would be used to shore up the finances of a troubled bank. “We are working on the FRDI (Financial Resolution and Deposit Insurance) Bill… not sure when it will be tabled in the House,” Sitharaman said.

Regarding the new tax proposals in the Budget, Sitharaman said the government has no intention of playing the role of big brother. “The government is a facilitator. The taxpayer is capable of taking a call on where he wants to put his money,” she said.