{"id":84097,"date":"2021-02-20T16:28:51","date_gmt":"2021-02-20T10:58:51","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=84097"},"modified":"2021-03-01T13:49:02","modified_gmt":"2021-03-01T08:19:02","slug":"govt-releases-new-public-sector-enterprise-policy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/govt-releases-new-public-sector-enterprise-policy\/","title":{"rendered":"Govt releases new “Public Sector Enterprise Policy”"},"content":{"rendered":"

What is the news?<\/strong><\/p>\n

The Government of India has released a new ‘Public Sector Enterprise Policy’.<\/p>\n

About ‘Public Sector Enterprise Policy’: <\/strong><\/p>\n

The policy classifies public sector commercial enterprises into the strategic and non-strategic sector:<\/p>\n

Strategic Sector<\/strong>: There would be a maximum of four public sector companies in strategic sectors. State-owned firms in other segments would be privatized eventually.<\/p>\n

The following 4 sectors are covered under strategic sectors:<\/p>\n

    \n
  1. Atomic energy, Space and Defence<\/li>\n
  2. Transport and Telecommunications<\/li>\n
  3. Power, Petroleum, Coal, and other minerals<\/li>\n
  4. Banking, Insurance, and financial services<\/li>\n<\/ol>\n

    Non- Strategic Sector: <\/strong>CPSEs of this sector shall be privatized or closed, if privatization is not possible.<\/p>\n

    Exceptions: <\/strong>The policy would not be applied on:<\/p>\n

      \n
    • Public sector classes like major port trusts, the Airport Authority of India, and undertakings in security printing and minting.<\/li>\n
    • Public sector entities such as not-for-profit companies or CPSEs providing support to vulnerable groups.<\/li>\n<\/ul>\n

      Process of Privatisation:<\/strong><\/p>\n

        \n
      • NITI Aayog will recommend PSUs for retention in strategic sectors and that should be considered for privatization, merger, or closure.<\/li>\n
      • The Core Group of Secretaries on Divestment(CGD)<\/strong> headed by the cabinet secretary will consider these recommendations.<\/li>\n
      • Final approval will be provided by the Alternative Mechanism<\/strong>. This mechanism consists of the Finance minister, Ministers for Administrative reforms, and the Minister for roads, transport, and highways.<\/li>\n
      • Further, the Department of Investment and Public Asset Management (DIPAM),\u00a0 can also approach the Cabinet for strategic disinvestment of a specific PSE from time-to-time. DIPAM manages government equity in public sector companies.<\/li>\n<\/ul>\n

        Source: <\/strong>The Hindu<\/strong><\/a><\/p>\n

        Strategic Disinvestment Policy: Issues and Challenges – Explained\u00a0<\/a><\/p><\/blockquote>\n