Implementation of New Public Sector Enterprise (PSE) Policy
A parliamentary panel has underscored the urgency of implementing the new Public Sector Enterprise (PSE) Policy to achieve fiscal prudence. Key highlights include:
- PSE Policy for Atmanirbhar Bharat:
- Intends for loss-making public sector undertakings (PSUs) in non-strategic sectors to be privatized or closed.
- Aims to promote fiscal prudence and efficient resource allocation.
- Limited progress in disinvestment as no non-strategic CPSE disinvestment proposal has been approved since December 2021.
- Policy Notification:
- Notified on February 4, 2021, with Cabinet approval.
- Focuses on reducing government presence in PSEs across all economic sectors.
- Strategic Sectors:
- Defined based on national security, energy security, critical infrastructure, financial services provision, and important minerals availability.
- Government to maintain minimal presence at the holding company level in strategic sectors.
- Outcomes and Challenges:
- Policy is a paradigm shift towards fiscal prudence.
- Implementation has been slow, with limited tangible outcomes so far.
The panel has highlighted the sluggish progress in translating policy into action, stressing the need for efficient implementation.
