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What is the News?
The government of India is set to approve several changes in the privatisation process for companies in non-strategic sectors.
Background
Recently, the Government of India has released a new ‘Public Sector Enterprise Policy’. The policy classifies public sector commercial enterprises into strategic and non-strategic sectors.
In the strategic sectors, there would be a maximum of four public sector companies.
On the other hand, companies in non-strategic sectors such as steel, tourism, urban development, and healthcare would be considered for privatisation, wherever feasible or else they would be closed.
How will the privatization process for non-strategic sectors take place?
Firstly, the Department of Public Enterprises(DPE) would examine non-strategic sectors and identify PSEs in these areas for privatisation.
Secondly, after sectoral evaluation, the DPE would recommend names of PSUs in non-strategic sectors to the Department of Investment and Public Asset Management(DIPAM).
Thirdly, following the identification of PSUs for privatisation or closure by the DPE, the names would be taken by DIPAM for Cabinet approval.
Source: This post is based on the article “Centre set to rejig privatisation process for non-strategic sectors” published in Business Standard on 3rd December 2021.
