The government has released a new 'Public Sector Enterprise Policy', under which atomic energy, space, defence, trans and telecom, power, petro, coal, other minerals, banking, insurance and financial services will be classified as strategic sectors.

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The remaining companies in strategic sectors will be considered for privatization/merger/closure and non-strategic sectors will be considered for privatization, where feasible or for closure.

In strategic sectors, the minimum presence of existing companies at the holding level will be retained under government control.

The government, however, said that the ongoing strategic divestment of CPSEs won’t be affected by this policy.

"NITI Aayog will make representations with respect to CPSEs under strategic sectors. NITI Aayog's recommendations will be considered by a core group of secretaries on divestment. Finally, an alternative mechanism for strategic divestment will approve action on CPSEs. An alternative mechanism for strategic divestment will decide if CPSEs will be retained under government control and on privation/merger/closure," it added.

First Published:Feb 5, 2021 8:47 AM IST