All sectors open to private companies, govt to announce new public sector enterprise policy

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Finance Minister Nirmala Sitharaman on Sunday said a new "coherent" public sector enterprises policy will be formulated that will define strategic sectors which will have not more than four PSUs. Sitharaman said all sectors are open to the private sector while public sector enterprises will play an important role in defined areas. Accordingly, the government will announce a new policy.

"All sectors will be opened to private sectors also. Public sectors will continue to play an important role in defined areas. We shall define the areas or categories. The strategic sectors in which public-private sector enterprises will be present will be notified. Not more than four enterprises will be present in each sector." 

List of strategic sectors requiring the presence of public sector undertakings (PSUs) in the public interest will be notified, she said while announcing her fifth and final economic stimulus package.

In strategic sectors, at least one enterprise will remain in the public sector but the private sector will also be allowed.

In other sectors, PSUs will be privatised.

"To minimise wasteful administrative costs, a number of enterprises in strategic sectors will ordinarily be only one to four; others will be privatised/merged/brought under holding companies," she said.