After approval from the core group of secretaries, the final list of names will go to the alternative arrangement for approval and finally it will go to the cabinet meeting.
New Delhi. NITI Aayog, in consultation with the Ministry of Finance, has started finalizing the names of the two public sector banks that are to be privatized during the current financial year. This step is being taken as part of the government’s disinvestment process. The commission has been given the responsibility of selecting two public sector banks and one general insurance company for privatization in FY 2021-22. It was announced in the budget presented in February.
Sources said that work is going on in this context. In this case, one to two meetings have been called by NITI Aayog. He said that several aspects need to be considered before coming to a conclusion. This includes human resource management, financial health, etc. After the NITI Aayog’s recommendation, it will be considered by the main group of secretaries constituted on disinvestment headed by the Cabinet Secretary. Other members of this high-level group include Secretary of Economic Affairs, Revenue Secretary, Expenditure Secretary, Secretary of Corporate Affairs, Law Secretary, Secretary, Department of Public Enterprises, Secretary, Department of Investment and Public Asset Management (Deepam) and Administrative Department. Includes secretary.
After approval from the core group of secretaries, the final list of names will go to the alternative arrangement for approval and finally it will go to the cabinet meeting to be chaired by the Prime Minister. After the Cabinet approval, changes will be made at the regulatory level to facilitate privatization. Last month, Finance Minister Nirmala Sitharaman said that the interests of the employees of the banks that will be privatized will be fully taken care of. Everything including their salary or scale or pension will be taken into consideration.
The government has set a target of raising Rs 1.75 lakh crore from disinvestment in public sector companies and financial institutions in the current financial year. This includes privatizing two public sector banks and one general insurance company.
