Lok Sabha Question No. 4145 (UNSTARRED), answered on 2021-03-22
Subject: New PSE Policy
Ministry: FINANCE
Asked by: Manne Srinivas Reddy, Komati Reddy Venkat Reddy, Kotha Prabhakar  Reddy

## GOVERNMENT OF INDJA MINISTRY OF  FINANCE

## DEPARTMENT  OF INVESTMENT  AND PUBLIC  ASSET MANAGEMENT

## LOKSABHA

## UNSTARRED QUESTION  NO. 4145

TO BE  ANSWERED ON MONDAY, MARCH 22,  2021 Chaitra l,  1943 (Saka)

## New  PSE  Policy

4145. SHRI MANNE SRlNIVAS REDDY: SHRI KOMATI REDDY VENKAT REDDY: SHRI KOTHA PRABHAKAR  REDDY: Will the  Minister  of FINANCE be pleased  to  state:

- (a)whether the new Public Sector Enterprises (PSEs) policy envisages that the strategic sectors have limited number  of players restricting  it  to maximum four  PSEs of  a holding nature  and  the  remaining  enterprises  would  be  rationalized  in  terms  of mergers, amalgamations and privatization if  feasible as part  of the 'Atmanirbhar  Bharat  Abhiyan' and there would be a maximum of  four  public sector  companies in strategic sectors and State-owned firms in other  segments  would  eventually  be  privatised;
- (b)if so,  the  details  thereof particularly  in  Andhra  Pradesh  and  Telangana;
- (c)whether the Government needs to build our capabilities and emphasise our domestic production for  global and domestic  outreach at  a  globally  competitive  cost and ensure  that the  desired results  are achieved in the  collaborative effect of the private sector  to enhance wealth,  improve  R&D  and  growth of the  economy;  and
- (d)  if so,  the  details  thereof and the  steps  being  taken by  the  Government  in  this  regard?

## ANSWER

## THE MINISTER  OF STATE IN THE MINISTRY OF  FINANCE

## (SHRJ ANURAG SJNGH THAKUR)

- (a) and (b):  In  the Budget 2021-22,  Government has announced a New Public Sector Enterprise (PSE)  policy, which provides for  a roadmap for  disinvestment  of PSEs in all non­ strategic and strategic sectors.  As per the policy,  four broad strategic sectors have been identified,  where bare  minimum presence  of the  existing  public  sector  commercial enterprises at Holding  Company level will be retained under  Government  control, while  the rest  will be considered for  privatization or  merger  or  subsidiarization with another  PSE  or  for  closure. In the  remaining sectors,  where  feasible,  all  CPSEs  will  be  considered  for privatization, otherwise such enterprises  shall be  considered for  closure. The identification of  CPSEs to be retained in a strategic sector shall  be subsequently done with the approval  of  a group of Ministers called  as 'Alternative  Mechanism'.  The  new  PSE  Policy is  available  on the  website ofDlPAM.
- (c) and (d): PSE Policy aims at  making newer  investment  opportunities  available for private sector, so  as  to  allow  infusion  of private  capital,  technology, innovation  and  best  management practices. Privatization of  the PSEs will help discovery of  true economic potential of such entities  which  may  result  in  generation  of higher  economic  growth  of the  company, development  of ancillary industries, which may  add to  the  GDP  of the  country  and  creation  of new  job  opportunities.