Driven by the privatization thrust and the intent to bring the curtain down on loss-making state-run companies, the government is considering reducing the number of public sector undertakings (PSUs) from 300 to as low as 24.
The Union Cabinet will decide on the final number, based on the NITI Aayog's recommendations, according to a TOI report. In non-strategic sectors, the government plans to exit several PSUs and less than 24 will be left, the report said.
For 2021-22, the Centre has set a divestment target of Rs 1.75 lakh crore. During the Budget speech on February 1, Finance Minister Nirmala Sitharaman said bare minimum central public sector enterprises (CPSEs) will be maintained and rest privatized in four strategic sectors.
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 privatized. In the remaining sectors all CPSEs will be privatized," 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.
