According to the new Public Sector Enterprise (PSE) Policy (2021), which statements are true or false?

(i) Strategic sector contains

1. Atomic energy, space and defence

2. Transport and telecom

3. Power, petroleum, coal and other minerals

4. Banking, insurance and financial services

(ii) Minimum one Government company will be kept. The remaining will be merged/privatized/shut down.

The correct answer is Only (i) is true and (ii) is false

Key Points

• The New Public Sector Enterprise (PSE) Policy (2021) was approved by the Indian government on February 4, 2021.
• The policy aims to provide a clear roadmap for disinvestment in all non-strategic and strategic sectors.
• The policy envisages the classification of Central Public Sector Enterprises (CPSEs) into strategic and non-strategic sectors and exempts certain CPSEs such as those set up as not-for-profit companies under the Companies Act, 2013, or those supporting vulnerable and weaker sections of society from the scope of the policy.
• The strategic sectors include atomic energy, space, defence, transport and telecommunications, power, petroleum, coal, other minerals, banking, insurance, and financial services. Hence, the statement i is true.
• 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 closure.
• In strategic sectors, the minimum presence of existing companies at the holding level will be retained under government control.
• The strategic sectors have a limited number of players, restricting it to a maximum of four public sector enterprises of the holding nature. Hence Statement ii is false
• Players, restricting it to a maximum of four public sector enterprises of the holding nature.
• The new PSE Policy envisages the classification of CPSEs into Strategic and Non-Strategic Sectors and exempts certain CPSEs such as those set as not-for-profit companies under the Companies Act, 2013 or those supporting vulnerable and weaker sections of society, from the scope of the Policy.