The government announced a new Public Sector Enterprise (PSE) policy that will open up all sectors for the private sector while the public sector enterprises will play an important role in defined areas.

Share Market Live

NSE

The new policy will broadly categorise strategic sectors. The government will notify a list of strategic sectors requiring the presence of Public Sector Enterprises (PSEs) in the public interest.

In such strategic sectors, at least one PSE will be there, but private sector will also be allowed. In other sectors, PSEs will be privatized.

"To minimize wasteful administrative costs, 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 announcing the fifth tranche of the Rs 20 lakh crore economic package.

The Central Public Sector Enterprises (CPSEs) are also classified into 'strategic' and 'non-strategic'. Areas of strategic CPSEs are Arms and Ammunition and the allied items of defence equipments, defence 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.

All other CPSEs are considered as non-strategic.

Also Read: FM Sitharaman says Rs 16,394 crore transferred to 8.19 crore farmers through PM-Kisan

First Published:May 17, 2020 12:29 PM IST