NEW PSU POLICY: ‘NEW PUBLIC SECTOR ENTERPRISES POLICY ENVISAGES AT MOST 4 STRATEGIC-SECTOR FIRMS’

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For : GS-3: Economy, Infrastructure-PSUs

NEW PSE POLICY:

Presenting the Union Budget 2021-22, As per the Centre's new disinvestment policy, every Public Sector Undertakings in all but 4 strategic sectors will be privatised.
The policy provides a clear roadmap for disinvestment in all
- Strategic and
- Non-strategic sectors.
4 areas to be PSEs: We have kept 4 areas that are strategic where bare minimum CPSEs will be maintained and rest privatised. In the remaining sectors, all CPSEs will be privatised
The new public sector enterprises policy envisages that the strategic sectors have limited number of players restricting it to maximum four public sector enterprises of a holding nature.
Remaining enterprises: They would be rationalised in terms of
- Mergers,
- Amalgamations and
- Privatisation if feasible.
Part of the Aatmanirbhar Bharat Abhiyan: As part of the ‘Aatmanirbhar Bharat Abhiyan’, Finance Minister Sitharaman had announced that
- There would be a maximum of four public sector companies in strategic sectors, and
- State-owned firms in other segments would eventually be privatised.

SIGNIFICANCE:

Globally competitive cost: “We need to build our capabilities and emphasise our domestic production for global and domestic outreach at a globally competitive cost.
Benefit of Private Sector: “We need to ensure that the desired results are achieved in the collaborative effect of the private sector
- To enhance wealth,
- Improve R&D, and
- Growth of the economy.”
Strong public sector in a strategic sector: The government wished to have a strong and impactful public sector in a strategic sector.
MSME Sectors: “MSMEs (micro, small and medium enterprises) have the potential in the sectors such as defence, infrastructure, manufacturing, power, petroleum, coal, mining, ports, airports, and many more, which will help to create better running of government assets.”

SOURCE: The Hindu