LIC IPO on schedule: Nirmala Sitharaman

India keeping close watch on Ukraine-Russia tensions, says FM

geetanjali

Geetanjali Minhas | February 23, 2022 | Mumbai


#GST   #finance   #banking   #LIC   #markets   #economy   #budget   #Nirmala Sitharaman   #Finance Minister   #diplomacy   #Russia   #Ukraine  


Escalating tensions between Russia and Ukraine have made the Indian government worried if the market situation is conducive but it will go ahead with the upcoming initial public offering of the state-run insurance giant behemoth LIC, finance minister Nirmala Sitharaman has said.
 
“There is a buzz in the market and there is interest for the LIC IPO. We are going ahead with it,” she said, adding, “We are equally worried if the market situation is conducive.”

Sitharaman was speaking to reporters during her post-budget outreach press conference in Mumbai on Tuesday.

She said that the release of the draft red herring prospectus (DRHP) has fuelled interest in the LIC IPO. “I think the way it is crafted, it has generated a lot of interest.”

The DRHP for the LIC IPO, released on February 13, is for the sale of around 316.25 million shares (5%) of the government.

With the oil prices rising up sharply and crossing $99 per barrel a day earlier due to tensions in Eastern Europe, Sitharaman said, “Crude oil is a worrisome situation where we actually voiced that we wanted a diplomatic solution for the situation that is developing in Ukraine. All these headwinds on the crude...  It is one of the very important considerations. We’ll have to see how it goes. We are keeping a watch on Brent.”

Adding that the prime minister had cut the fuel tax before Diwali in response to calls from public, she said, “The problem is that fuel prices are high because of global supply issues. What oil marketing companies do, I cannot answer. When we come to a stage that we need to take a decision on excise duty on fuel prices, we will come out publicly.”
 
Asked about the row between the centre and states over the payment of GST compensation to the latter, Sitharaman said there is "no adversarial relationship" between the two sides. “We all work together. The GST Council has itself decided that compensation cess will continue to be collected until March 2026. This will make up for the shortfall until now. This extension in GST compensation collection will also be used to pay interest on the borrowed money,” she said.

She further said that the finance ministers of all states participate in the GST council where decisions are taken. GST of all states is collected in front of everyone. Everything is transparently built in the system. Decisions are taken by the GST council and not by any individual.

In a lighter vein, Sitharaman added, “The Maharashtra finance minister is the chief of the group of ministers. We hold him in high regards.”

Speaking on the opposition’s claims that the government is misusing central agencies to put pressure on rivals, Sitharaman said, “ED is a law-enforcing agency which deals with predicate offence …which means there is an offence somewhere which is being acted upon and post that an offence created is coming under the PMLA (Prevention of Money Laundering Act) and only after which ED comes into picture. Without ground work and before an offence is already being investigated, ED cannot enter anywhere.”

When Governance Now sought a comment on banker Naina Lal Kidwai’s view on disinvestment – she said in recent Governance Now webinar that for disinvestment deals to happen it is important that investigative agencies do not revisit M&A deals 10-15 years down the line, Sitharaman said, “She is right.”
 
Sitharaman was in the financial capital on a two-day visit to hold discussions over the recent union budget with representatives of industry, trade and financial market.

Earlier in the day, she chaired a post-budget meeting with the heads of banks, NBFCs and financial institutions. She exhorted all banks to sign up to the account aggregator framework to improve the credit flow and promote digital lending. Her meeting emphasized that benefits of digital banking should reach every nook and corner of the country in a consumer-friendly manner.

She also chaired the 25th meeting of the Financial Stability and Development Council (FSDC). It deliberated on various mandates of FSDC and major macro-financial challenges arising in view of global and domestic developments.

Comments

 

Other News

Sustainable travel emerging as preferred choice: Report

An increasing number of people will prefer to rely on emerging and new technologies and travel in more sustainable ways, according to a global research study, Traveller Tribes 2033, has revealed.   The global survey is third in a series launched in 2007 and identifies four Traveller Trib

Budget creates the ground – now it’s time for these steps

On February 1, finance minister Nirmala Sitharaman announced the Union Budget. As Dr. Rajiv Kumar, the Pahle India Foundation chairman and former NITI Aayog vice chairman, succinctly summed up, “Budget 2023 is a consolidation of the gains over the years, and a positive step towards sustained economic

Should India look for another capital?

The Indian Metropolis: Deconstructing India’s Urban Spaces By Feroze Varun Gandhi Rupa, 840 pages, Rs 1,500 Feroze Varun Gandhi, a Member of Parliament from the BJP, has been a published poet. He is also a policy expert – he had published &

Railways’ freight earnings up by 16%

On mission mode, Indian Railways` Freight loading for first ten months of this financial year 2022-23 has crossed last year’s loading and earnings for the same month. On cumulative basis from April 2022 to January 2023, freight loading of 1243.46 MT was achieved against last year&rsquo

BMC announces Rs 52,619.07 crore budget

Mumbai’s municipal commissioner and administrator Iqbal Singh Chahal on Saturday announced a Budget of Rs 52,619.07 crore for 2023-2024, an increase of 20.67% over a revised budget estimate of Rs 43607.10 crore for 2022-23. The overall budget size has doubled in five years. In 2017-18

Making sense of the ‘crisis of political representation’

Imprints of the Populist Time By Ranabir Samaddar Orient BlackSwan, 352 pages, Rs. 1105 The crisis of liberal democracy in the neoliberal world—marked by massive l

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter