Finance Minister Nirmala Sitharaman will present the General Budget in Parliament on 1 February 2021. Experts hope that in Budget 2021, the Finance Minister can present the blueprint of the PSE Privatisation Policy for privatization of government companies. The central government plans to sell its stake in all government companies (PSUs) that are not strategically important. The government is preparing to exit from all PSUs in the non-strategic sector.
The cabinet headed by PM Modi on Wednesday approved the new Public Sector Enterprises Policy (PSE Privatisation Policy) which will decide which sectors are strategic for India and which are non-strategic sectors. Those PSUs in the strategic sector will be placed which are very important for national interest and people. Sources associated with the matter said that the Budget 2021 may announce a policy under which the central government will decide to maintain its presence in strategic sectors and sell its stake in non-strategic sectors.
Maximum 4 PSUs to be placed in strategic sector
Let us tell you that in May 2020, while announcing the self-sufficient India package, the Central Government had said that maximum 4 PSUs can be placed in the strategic sector. At the same time, the government will sell its stake in all the remaining companies. Now the government is coming out with PSE Privatisation Policy, under which strategic and non-strategic sectors will be identified and all other central public sector enterprises- CPSEs will be privatized, which will be practical.
Total 249 CPSEs in the country, 54 of which are listed on the stock exchange
Sources say that the government will focus on the privatization of these public sector enterprises (PSEs) in Budget 2021. The government will meet its increased expenditure with the proceeds from this disinvestment. Let us tell you that for the financial year 2020-21, the government had targeted to raise Rs 2.10 lakh crore from disinvestment. But so far, the government has received only Rs 17,957 crore by selling minority stakes in CPSEs and through share buybacks. There are currently 249 CPSEs in the country whose combined turnover is more than 24 lakh crores and their combined net worth is more than 12 lakh crores. Of these 249 CPSEs, 54 PSUs are listed on the stock exchange.