NITI Aayog submits first list of 12 PSUs for Privatisation

The government’s think tank, NITI Aayog has submitted the first list comprising of 12 Public Sector Undertakings that will be privatized under the centre’s privatisation drive.

Highlights

The list submitted by the NITI Aayog includes the PSUs in strategic sectors. This list will now be reviewed by Department of Investment and Public Asset Management (DIPAM) and Core Group of Secretaries on Divestment (CGD) which is headed by cabinet secretary. The list comprises of the PSUs and insurance companies which will first follow the centre’s ambitious drive of privatisation.

Background

The plan to privatise the PSUs was announced by the Finance Minister Nirmala Sitharaman in the Budget 2021. This will clear the ways for centre to complete the target of Rs 1.75 lakh crores of disinvestment in the financial year 2021-2022. FM Sitharaman had announced to privatise two PSBs and one general insurance company in the year 2021-22. The NITI Aayog has been entrusted with the task to suggest names of PSUs in strategic sectors that are needed to be merged, privatised or made subsidiaries of other PSUs in accordance with the new Public Sector Enterprise (PSE) policy of Aatma Nirbhar Bharat.

What are the strategic sectors?

The strategic sectors comprise of the petroleum, power, atomic energy, coal, and other minerals, space, defence, insurance, banking, financial services, transport and telecommunications. In these sectors, centre wants to keep the bare minimum presence. However, the PSEs which are functioning as the autonomous organisations such as Food Corporation of India (FCI) and Airports Authority of India (AAI) have been kept out of the policy. The PSUs in the non-strategic sectors like steel and hospitality will either be privatised or closed.

Month: Current Affairs - March, 2021