CURRENT AFFAIRS

Detailed explanation-1: -The central government is planning the privatization of several companies, including BEML, Shipping Corp, Concor, Vizag Steel, IDBI Bank, Nagarnar Steel Plant of NMDC and HLL Lifecare.

Detailed explanation-2: -There are a total of 12 public sector banks in India today. These banks were nationalised and are currently run by the government.

Detailed explanation-3: -The markets must see value in the chosen banks to attract two or more buyers. Even as NITI Aayog suggested privatisation of the Central Bank of India and Indian Overseas Bank, the report recommends Indian Bank and Bank of Baroda as the two top choices for privatisation.

Detailed explanation-4: -This would reduce the financial burden on the government while also ensuring that PSBs become more efficient and profit-making entities under private ownership. According to the Union Budget 2021-22, the government had announced its decision to start by privatising two PSBs.