No disinvestment of agri-linked PSUs: Government
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Public sector companies engaged in actions allied to the farm sector, resembling provision of seeds to farmers, or procurement and distribution of meals for the general public distribution system, is not going to be up on the market underneath the brand new disinvestment coverage introduced within the Budget.
While the coverage has specified 4 strategic sectors the place ‘bare minimum’ public sector presence shall be retained as per Finance Minister Nirmala Sitharaman’s Budget speech, an annexure to the coverage has listed out courses of public sector entities that can stay exterior its ambit.
In a memo to all ministries issued on Thursday by the Department of Investment and Public Asset Management (DIPAM) within the Finance Ministry, it has additionally been clarified that ongoing transactions for strategic disinvestment such because the sale of Air India, Pawan Hans and BPCL shall proceed to be undertaken as per the present process.
Niti Aayog shall be in cost of recommending which public sector companies in strategic sectors ought to be retained, thought of for privatisation or merger or ‘subsidiarisation’ with one other public sector agency, or just closed. After a core group of secretaries on disinvestment considers the Aayog’s suggestions, a ministerial group together with the Finance Minister, Road Transport and Highways Minister Nitin Gadkari and the minister in cost of the executive ministry in cost of the general public sector enterprise involved will study the proposals.
“DIPAM shall move proposal for obtaining ‘in-principle’ from the Cabinet Committee on Economic Affairs for strategic disinvestment of a specific PSE from time to time, on a case-to-case-basis. The timing for specific transactions will, however, be contingent on the considerations of appropriate sequencing, sectoral trends, administrative feasibility, investors’ interests, etc,” the coverage memo defined.
Exclusions
Among different ventures, “central public sector enterprises concerned with assisting farmers in mainly getting access to seeds; promoting innovation in agriculture; or, procurement and distribution of food for Public Distribution System” are excluded from the coverage.
The excluded checklist additionally consists of public sector companies ‘maintaining critical data having a bearing on national security’, safety printing and minting firms and people offering assist to susceptible teams by financing of SCs, STs, minorities, backward courses, and Safai Karmacharis.
Development financing or refinancing establishments and autonomous our bodies, some of which can have been arrange by Acts of Parliament, is not going to be half of the disinvestment coverage. Firms manufacturing aids and home equipment for the bodily challenged, may also stay within the public sector.
Not-for-profit firms shaped for various promotional functions have additionally been excluded. The coverage additionally gained’t have an effect on departments like Railways and Post that undertake industrial operations with a improvement mandate, main port trusts and the Airport Authority of India.
