Centre looking to expedite sale of non-strategic PSUs

The union government is looking to expedite the sale of public sector enterprises in non-strategic sectors.

The Department of Public Enterprises (DPE), along with NITI Aayog, Department of Investment and Public Asset Management (DIPAM) and Department of Expenditure, is in the process of identifying non-strategic central public sector undertakings (PSUs) either for closure or privatisation, government sources told Business Today TV.

"There are about more than 100 non-strategic PSUs. Companies like Balmer Lawrie, RCF (Rashtriya Chemicals and Fertilizers) and NFL (National Fertilizers Ltd) are being handled by the DPE. There are temporary roadblocks in the process, but the process is now being expedited. DPE will soon take a proposal to CCEA (Cabinet Committee on Economic Affairs) for in-principle approval on central PSUs that need to be shut down," said an official.

"We are still evaluating the strategic sale of BPCL (Bharat Petroleum Corp Ltd), CONCOR (Container Corporation of India Ltd) and SCI (Shipping Corp of India). No final decision has yet been taken on the timelines," the source added.

Last year, Finance Minister Nirmala Sitharaman had unveiled the public sector enterprises policy which entails that the government will limit its presence majorly to only strategic sectors like atomic energy, space and defence; transport and telecommunications; power, petroleum, coal and other minerals; banking, insurance and financial services. In the non-strategic sectors, all central PSUs will be privatised, or closed in case privatisation is not possible.

The government has set a disinvestment target of Rs 65,000 crore for FY23. Recently, it also updated the draft papers with market regulator Securities and Exchange Board of India (SEBI) for the initial public offering of Life Insurance Corporation of India (LIC). The divestment of stake in LIC will help the government raise around Rs 60,000 crore.

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