On Sunday Finance Minister Nirmala Sitharaman announced about the upcoming Public Sector Enterprise (PSE) policy that will allow the private sector to participate in every sector available and the public sector enterprises will play an important role in defined areas.
“The strategic sectors requiring the presence of public sector enterprises in the public interest will be notified,” she added.
In such strategic sectors, there will be at least one Public Sector Enterprise (PSEs) and the private sector will also be allowed. While in other sectors, PSEs will be privatized.
To minimize wasteful administrative costs, the number of enterprises in strategic sectors will ordinarily be only one to four, others will be privatized/merged/brought under holding companies,” Finance Minister Nirmala Sitharaman said on Sunday while she was announcing the fifth tranche of the Rs 20 lakh crore economic relief package.
The Central Public Sector Enterprises (CPSEs) are also classified into two categories ‘strategic’ and ‘non-strategic’.
Strategic CPSEs – Areas of are Arms and Ammunition and the allied items of defense equipment, defense air-crafts and warship, Atomic Energy (except in the areas related to the operation of nuclear power and applications of radiation and radio-isotopes to agriculture, medicine, and non-strategic industries) and Railways transport.
And, all other CPSEs are under the non-strategic category.