NITI Aayog to finalise names of 2 PSBs for privatisation soon

NITI Aayog, in consultation with the Finance Ministry, has recently started deliberations to finalise the names of 2 public sector banks that will be privatised in the current fiscal as part of the disinvestment process. NITI Aayog has been entrusted with the task of selection of names of 2 public sector banks and 1 general insurance company for the privatisation as announced in the Budget 2021-22.

The work in this respect is going on. A couple of meetings have been convened by the NITI Aayog on the subject. There are various aspects that have to be looked into including regulatory issues, financial health, HR management etc. before reaching a conclusion.

Once NITI Aayog makes its recommendations, it will be vetted by the Core Group of Secretaries on Disinvestment headed by Cabinet Secretary.

The other members of the high-level panel are Economic Affairs Secretary, Expenditure Secretary, Revenue Secretary, Corporate Affairs Secretary, Secretary Legal Affairs, Secretary Department of Public Enterprises, Secretary Department of Investment and Public Asset Management (DIPAM) and the Secretary of administrative department.

Following clearance from the Core Group of Secretaries, the finalised names will go to Alternative Mechanism (AM) for its approval and eventually to the Cabinet headed by the Prime Minister for the final nod.