Cabinet Clears PSU Privatization Policy
The Union Cabinet has cleared the privatization policy of public sector undertakings (PSUs). However, the details of the policy are expected to be announced in the Union Budget.
- The Cabinet has paved the way for the privatization of public sector undertakings (PSUs).
- The details related to the policy will be announced by Finance Minister Nirmala Sitharaman in the Union Budget 2021 that will be presented on February 1.
- The policy was announced in May 2020 as a part of the Aatmanirbhar Bharat package.
- It is a policy through which all sectors would be open for private sector participation.
- The government had then also announced to limit the presence of PSUs to 1 to 4 in strategic sectors, and to privatize, merge or bring the remaining companies under a holding company.
According to the initial draft of the policy floated by the Department of Investment and Public Asset Management, around 18 sectors were classified as strategic sectors, including fertilizers, power, telecom, banking, insurance, and defence.