The government has announced a new Public Sector Enterprise policy that will open up all the sectors for the private sector while the public sector enterprises will play an important role in the defined areas.
The new policy will broadly categorise strategic sectors. The government will notify a list of strategic sectors requiring the presence of Public Sector Enterprises (PSEs) in the public interest. In such planned sectors, at least one PSE will be there, but private sector will also be allowed. In other sectors, PSEs would be privatized.
Finance Minister Nirmala Sitharaman said on Sunday – “To minimize wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be just one to four, others are going to be privatized/merged/brought under holding companies”, while announcing the fifth tranche of the Rs 20 lakh crore economic package.
The Central Public Sector Enterprises are classified into the ‘strategic’ and ‘non-strategic’. Areas of strategic CPSEs are Arms and Ammunition and the allied items of defence equipments as well as defence air-crafts and warship, Atomic Energy that except in the areas related to the operation of nuclear power and applications of radiation and radio-isotopes to agriculture, medicine and non-strategic industries and Railways transport.