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Govt may cut down number of PSUs to two dozen from 300: Report

During the Budget speech on February 1, Finance Minister Nirmala Sitharaman said that in four strategic sectors, bare minimum CPSEs will be maintained and rest privatised.

February 08, 2021 / 03:52 PM IST

The government might bring down the number of public sector undertakings (PSUs) to around 24 from the current 300, amid increased focus on privatisation and efforts to close loss-making state-run companies.

The Union Cabinet will decide on the final number, based on the NITI Aayog's recommendations, The Times of India reported.

In non-strategic sectors, the government plans to exit several PSUs and less than 24 will be left, the report said.

Moneycontrol could not independently verify the story.

For 2021-22, the Centre has set a divestment target of Rs 1.75 lakh crore.

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During the Budget speech on February 1, Finance Minister Nirmala Sitharaman said bare minimum central public sector enterprises (CPSEs) will be maintained and rest privatised in four strategic sectors.

Also Read: Budget 2021 | Govt to go big on privatisation in FY22; FM announces details of strategic sector policy

The four strategic sectors that have been identified are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and banking, insurance and financial services.

"The policy provides a clear roadmap for disinvestment in all nonstrategic and strategic sectors. We have kept four areas that are strategic where bare minimum CPSEs will be maintained and rest privatised. In the remaining sectors all CPSEs will be privatised," Sitharaman said.

The identification of strategic sectors was first announced as a part of the Aatmanirbhar Bharat package, the government's measures to provide relief during the COVID-19 pandemic.
Moneycontrol News
first published: Feb 8, 2021 10:55 am
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