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Last Updated : Jul 15, 2020 11:36 AM IST | Source: Moneycontrol.com

Reforms coming, government working on privatisation policy: Report

The government may completely exit non-strategic sectors and reduce its presence in strategic industries.

File image of a Union Cabinet meeting (PIB)
File image of a Union Cabinet meeting (PIB)

The Union Cabinet is working on a policy that will see privatisation of state-run companies under a proposal announced as part of the Aatmanirbhar Bharat Abhiyan.

The government may completely exit non-strategic sectors and reduce its presence in strategic industries, according to a report by The Economic Times.

"Proposal is expected to be finalised before the next cabinet meeting," an official told the publication.

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Moneycontrol could not independently verify the story.

The Department of Investment and Public Asset Management (DIPAM) will soon finalise a draft where sectors will be identified as strategic and non-strategic, The Economic Times reported.

Also read: Mission Aatmanirbhar Bharat | COVID-19 crisis shows that Indian medical devices sector can rise to the challenge

The strategic industries list is expected to include banking, petroleum, atomic energy, defence, space, and ports, the report added.

The final decision on the list of strategic industries will be made at the highest level, an official told the publication.

Finance Minister Nirmala Sitharaman had on May 17 said public sector enterprises (PSEs) in non-strategic sectors will be privatised.

Private players will be permitted to participate in strategic sectors, but at least one company should remain in the public sector.

To reduce wasteful administrative costs, the number of PSEs in strategic sectors will be limited between one and four.
First Published on Jul 15, 2020 11:35 am
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