Port Trusts, Railways, Posts out of purview of new PSE policy

By Sarkaritel February 10, 2021 07:51

New Delhi, Feb 10  Major Port Trusts, the Airports Authority of India, the Indian Railways and Posts along with regulatory bodies and companies engaged in welfare activities are among the classes of public sector entities which are out of the purview of the new PSE policy for ‘Aatmanirbhar Bharat’.

The Department of Disinvestment and Asset Management (DIPAM) under the Finance Ministry has circulated a list of such PSEs to all ministries and departments of the Central government under the new PSE policy for Aatmanirbhar Bharat.

The Union Cabinet had on January 27 cleared the Public Sector Enterprise (PSE) policy for Aatmanirbhar Bharat.

The scope of the policy is limited to the existing Central public sector enterprises, public sector banks and public sector insurance companies.

The policy does not apply to certain classes of public sector entities such as not for profit companies or CPSE’s providing support to vulnerable groups or having developmental or promotional roles.

The classes of public sector entities outside the scope of the policy are PSEs in the nature of developmental and regulatory bodies, development financing institutions, and trusts, some of which have been created through the Acts of Parliament.

The exclusions include major Port Trusts and the Airports Authority of India, under the Acts of Parliament. In addition, the list includes not for profit companies for various promotional purposes created under the Companies Act.

It also includes CPSEs concerned with providing support to vulnerable groups including SC, ST, minorities, backward classes and safai karamcharis or manufacturing aids and appliances for the Divyang.

The list also includes PSUs assisting farmers in mainly getting access to seeds, promoting innovation in agriculture or procurement and distribution of food for the Public Distribution System.

Finally, the classes not included in the policy are PSUs engaged in security printing and minting, maintaining critical data having bearing on the national security and lastly the departments of the government like Railways and Posts that undertake commercial operations with a developmental mandate.

As per the policy, the public sector commercial enterprises have been categorised as strategic and non-strategic sectors. The strategic sectors have been delineated based on the criteria of national security, energy security, critical infrastructure, provision of financial services and availability of important minerals.

The sectors that have been identified as strategic sectors are atomic energy, defence and space, transport and telecommunication, power, petroleum, coal and other minerals, banking, insurance and financial services.

In strategic sectors, bare minimum presence of the existing public sector commercial enterprises at holding company level will be retained under government control. The remaining enterprises in a strategic sector will be considered for privatisation or merger or subsidiarisation with another PSU or for closure.

In non-strategic sectors, the PSUs shall be considered for privatisation, where feasible, otherwise such enterprises shall be considered for closure, the Finance Ministry circular said.

The Niti Aayog will make recommendations with regard to the PSUs in strategic sectors that are to be retained under government control or considered for other alternatives. Their recommendations will be studied by the Core Group of Secretaries on Disinvestment (CGD).

The alternative mechanism (AM) on disinvestment comprising the Finance Minister, ministers of administrative ministries and the Minister of Road Transport and Highways will consider the CGD recommendations.

The DIPAM shall move a proposal for obtaining in-principle approval of the CCEA for strategic disinvestment of a specific PSE from time to time on a case to case basis.

By Sarkaritel February 10, 2021 07:51

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