The govt's privatisation policy aims to keep a minimum presence in specified strategic sectors and privatize the rest. Let us find out how the Centre is moving ahead with its mega privatisation plan
A week ago, the government announced the sale of Central Electronics Limited to little-known Nandal Finance and Leasing for Rs 210 crore. The sale was the culmination of the government’s five-year-old struggle to divest its 100 per cent stake in the company, known for manufacturing solar cells and modules.
This marked the second strategic privatisation this financial year after Air India. FY21 is turning out to be a pivotal year for the government’s privatisation program.
To help with this, the government in July brought the Department of Public Enterprises (DPE) under the Ministry of Finance. It was previously under the Ministry of Heavy Industries and Public Enterprises.
This move increased the Finance Ministry’s control over public sector undertakings (PSU) and quickened the implementation of privatisation proposals. The Department of Public Enterprises monitors the performance of PSUs and reviews their capital expenditure.
Now, the Centre is set to rejig the privatisation process for companies in non-strategic sectors. This includes steel, tourism, urban development, and healthcare sectors.
Under the new Public Sector Enterprises (PSE) policy, companies in such sectors will be considered for privatization, wherever feasible. Else they would be shut down.
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