A new owner and a road to profit: perks of PSU sale

As part of the stimulus package, the Centre announced a public sector enterprise policy built on the principle of defining strategic sectors that will have at the most four public sector undertakings (PSUs). This indicates a push towards privatization. Mint explores the issue.

What is the policy put forth by the Centre?

Union finance minister Nirmala Sitharaman has indicated that the public sector enterprise policy will be based on the principal of having at least one PSU or a maximum of four in strategic sectors. The government will also allow for private sector participation in these sectors with the objective of fostering greater competition. The government expects the move to result in improved efficiency of these sectors. The process of definition of the strategic sectors is likely to be provided by the Centre in the weeks ahead. The government has also stated that it will exit all PSUs that are in other sectors.