- A list of strategic sectors will be created for public sector enterprises
- Private companies will also be able to do business with the government company in all sectors.
May 17, 2020, 01:29 PM IST
new Delhi. The final and fifth installment of the Rs 20 lakh crore stimulus package announced to tackle the Corona disaster was announced on Sunday. During this, Finance Minister Nirmala Sitharaman said that the whole world is now emphasizing on reforms. In this direction, we have also decided to change into Public Sector Enterprises (PSE). For this, a new Public Sector Enterprises Policy will be introduced soon.
Finance Minister's announcement
- New policy will be introduced for Public Sector Enterprises for self-reliant India.
- A new list of strategic sectors will be released for public sector enterprises for public interest.
- A sector will consist of at least one public sector and a maximum of four companies. In addition, private companies will also be involved in each sector.
- Companies from sectors other than the strategic list will be privatized or merged.
What will be the benefit
- The number of government companies in a sector will end the competition. This will make the company easier to do business.
- The government will benefit both administratively and economically by classifying companies by sector.
- Expenditure on government companies will be curbed.
Government will get fund
After determining the companies according to the strategic sector, other companies will be privatized or merged with other companies. This will provide additional funds to the government.
Private sector will also benefit
Private sector companies will also benefit from this policy of the government. They will also be able to do business with government companies in the strategic sector to be decided by the government. At present, private companies are not allowed to do business in many sectors.
There will also be benefits in company management
Government will benefit in company management by having a prescribed PSE in one sector. For this, the government will not have to appoint more officers. This will reduce administrative expenses.