The union government is seeking to accelerate the sale of public sector companies in non-strategic sectors.
The Department of Public Enterprises (DPE), together with NITI Aayog, the Department of Investment and Public Assets Management (DIPAM) and the Department of Expenditure, is in the process of identifying Central Public Sector Enterprises (PSUs) non-strategic to close or privatize. , government sources told Business Today TV.
“There are about more than 100 non-strategic UAPs. Companies like Balmer Lawrie, RCF (Rashtriya Chemicals and Fertilizers) and NFL (National Fertilizers Ltd) are run by the DPE. There are temporary roadblocks in the process, but The process is DPE will soon present a proposal to the CCEA (Cabinet Committee on Economic Affairs) for approval in principle of central power supplies that are to be shut down,” an official said.
“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,” added the source.
Last year, Finance Minister Nirmala Sitharaman unveiled the public sector enterprise policy which implies that the government will limit its presence mainly to only strategic sectors such as atomic energy, space and defence; transport and telecommunications; energy, oil, coal and other minerals; banking, insurance and financial services. In non-strategic sectors, all central PSUs will be privatized or closed if privatization is not possible.
The government has set a divestment target of Rs 65,000 crore for FY23. Recently, it also updated draft documents with market regulator Securities and Exchange Board of India (SEBI) for the public offering initial Life Insurance Corporation of India (LIC). Divesting the stake in LIC will help the government raise about Rs 60,000 crore.
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