List Of 12 PSU Banks, Insurance Firms Finalised For Selling To Private Firms
First list about 12 public sector undertakings (PSUs) to be privatised has been submitted by NITI Aayog, a body headed by the prime minister.
A top government official said that the submitted list will be considered by the Department of Investment and Public Asset Management (DIPAM), and the Core Group of Secretaries on Divestment (CGD), headed by the cabinet secretary.
The submitted list has public sector banks and insurance companies.
Finance Minister Nirmala Sitharaman , during her budget speech, announced that the government will be privatising two public sector banks and one general insurance company in 2021-22.
List Of PSUs To Be Submitted By NITI Aayog
There is a new policy devised for Aatmanirbhar Bharat, Public Sector Enterprise (PSE), it has been mandated to NITI Aayog to recommend the names of PSUs in strategic sectors to be privatised, merged, or made subsidiaries of other PSUs.
Atomic energy, space, and defence; transport and telecommunications; power, petroleum, coal, and other minerals; and banking, insurance, and financial services are various strategic sectors. The government now intends to keep a “bare minimum” presence in the strategic sectors
Various Organizations That Have To Be Kept Out
Various organizations have been kept out of the policy. These include Public sector enterprises acting as regulatory authorities, autonomous organisations, trusts, and development financing institutions such as Food Corporation of India and the Airports Authority of India. PSUs in the non-strategic sectors like steel and hospitality would either be privatised or closed.
CGD, after considering the recommendations of the NITI Aayog , will give its suggestions to the Alternative Mechanism (AM). Alternative Mechanism (AM) comprises of the finance minister, the minister for administrative reforms, and the minister for roads, transport and highways.
After the approval of AM, depending upon sectoral trends, administrative feasibility, and investors’ interest DIPAM will then move a proposal to obtain in-principle approval from the Cabinet Committee on Economic Affairs for strategic divestment in a PSU case by case
After kicking off the privatization drive, list of PSUs will be its first step towards the Rs 1.75-trillion divestment target for the next financial year.
Identification of assets of public sector enterprises and government departments to monetise them under the National Monetisation Pipeline is separately being worked on NITI Aayog.