The new PSE policy for Atmanirbhar Bharat envisages loss-making public sector undertakings (PSUs) in non-strategic sectors be considered for privatisation or closure.
“This policy aims to promote fiscal prudence and efficient resource allocation. However, not much headway has been made in this regard as the proposal for disinvestment of any non-strategic CPSE has not been approved since the guidelines were issued in December 2021,” the Standing Committee on Finance said in its report.
The PSE policy for Atmanirbhar Bharat, which also provides overall guidance on strategic disinvestment, was notified on February 4, 2021, with the approval of the Cabinet. The policy intends to minimise the presence of the government in PSEs across all sectors of the economy.
The policy delineates four strategic sectors based on the criteria of national security, energy security, critical infrastructure, provision of financial services and availability of important minerals. Bare minimum presence of the existing public sector commercial enterprises at the holding company level will be retained under government control in the strategic sectors.
The remaining will be considered for privatisation or merger, or subsidiarisation with another PSE or closure.
The panel, headed by BJP leader Bhartruhari Mahtab, said that the policy represents a paradigm shift toward fiscal prudence, yet its translation into tangible outcomes remains sluggish.