Government to come out with list of strategic sectors

The government is coming out with a new public sector enterprises policy that is going to define the strategic sectors which will not have more than four public sector undertakings. It has been announced by the Finance Minister Nirmala Sitharaman.

Highlights

As part of the ‘Atmanirbhar Bharat Abhiyan’ package, the government announced that there would be a maximum of four public sector companies and the state-owned firms in all the other sectors would be privatized gradually. The proposal is going to be presented to the cabinet very soon. The government is either going to be merged or they will be brought together in such a way that there are only four or lesser in that sector. Various other models will also be employed in order to achieve the criterion of the maximum of four PSUs in case of those falling under the strategic sector.

Details

Under the policy, a list of strategic sectors will be notified where there will be at least one and a maximum of four public sector enterprises, apart from the private sector companies. In other sectors, the companies owned by the government will be privatized gradually.

Need for this policy

The government wants to come out with the policy since India needs a coherent policy in this regard and all the sectors will be opened to private sectors also. Though the PSEs continue to play a critical role in certain areas, there are certain areas where the private sector should also be given the necessary opportunity. That is why; a coherent policy is being designed by the government.

Month: Current Affairs - August, 2020