MAJOR PORT TRUSTS, AAI OUT OF THE SCOPE OF PSE DIVESTMENT

NEW DELHI: Certain classes of public sector entities, like major port trusts, Airport Authority of India, those undertaking security printing and minting, will not fall within the purview of the new PSE policy for strategic disinvestment.

The new Public Sector Enterprise (PSE) policy for Aatmanirbhar Bharat, which classifies public sector commercial enterprises as strategic and non-strategic sector, would be limited to central public sector enterprises, public sector banks and public sector insurance companies.

“The policy, however, does not apply to certain classes of public sector entities such as not-for-profit companies or CPSEs providing support to vulnerable groups or having developmental/promotional roles,” said the scope of the PSE policy announced in the Budget.

Finance minister Nirmala Sitharaman in the Budget unveiled the disinvestment/strategic disinvestment policy, which had four strategic sectors in which “bare minimum” number of CPSEs will be retained and the rest would be privatised or merged or made subsidiary of another CPSE or closed down.

The four sectors are atomic energy, space and defence; transport and telecommunications; power, petroleum, coal and other minerals; and banking, insurance and financial services in non-strategic sectors, CPSEs will be privatised, or will be considered for closure.

The classes of PSEs kept out of the scope of the new policy include entities in the nature of development and regulatory authorities, autonomous organisations, development financing or refinancing institutions.

Major port trusts and Airports Authority of India, set up under the Acts of Parliament, would not fall within its ambit. CPSEs supporting vulnerable groups through financing of SCs, STs, minorities, backward classes and safai karmacharis, etc, or manufacturing aids and appliances for divyangs or those assisting farmers in mainly getting access to seeds, promoting innovation in agriculture, or procurement and distribution of food for public distribution system will not be covered by the policy.

CPSEs involved in security printing and minting, or maintaining critical data having bearing on the national security will also be kept out of the policy.

Departments like Railways and Posts, that undertake commercial operations with a development mandate, are also exempt from the policy.