Budget 2020 News: Modi Government to raise Rs 2.1 lakh crore for FY21 from disinvestment; LIC, IDBI Bank in stake sale list

Budget 2020 News: According to the budget (#BudgetOnZee) proposals being presented by Finance Minister Nirmala Sitharaman today, the Narendra Modi government plans to raise Rs 2.1 lakh crore for FY21 from disinvestment. The finance minister announced to sell 47 per cent stake of the center in the IDBI bank while she said that the government will soon come with LIC IPO (Initial Public Offer).

While unveiling the Budget 2020 (#BudgetOnZee) Nirmala Sitharaman said, "The Government of India has targets to generate Rs 2.1 lakh crore through disinvestment of its shareholdings in various PSUs and other undertakings."

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Speaking on the LIC IPO, Nirmala Sitharaman said that the insurance major Life Insurance Corporation (LIC) of India will be available for listing at the BSE and NSE as part of the Modi Government's disinvestment strategy. She announced in her budget speech that the government of India proposes to sell a portion of its shareholdings in the LIC through Initial Public Offer (IPO).

Sitharaman went on to add that the Modi 2.0 Government will sell its entire stake in the IDBI Bank to meet the disinvestment targets it has set to achieve in the FY21. The Central Government has 47 per cent shares in the IDBI Bank. This announcement had a huge impact on the IDBI Bank share price as the banking stock registered over 10 per cent gains in the intraday trade. This rise in IDBI shares means a lot for the markets as in the intraday trade Sensex crashed 987 points while the Nifty index went down 300 points.