Union Cabinet clears new divestment policy

31 Jan 2021 CW Team

The Cabinet Committee of Economic Affairs cleared the Public Sector Enterprises (PSE) policy, said sources.

The policy was announced as part of the "Atmanirbhar Bharat" initiative in May 2020 by Finance Minister Nirmala Sitharaman.

The Finance Minister had then said that a list of strategic sectors requiring the presence of PSEs in the public interest would be notified. Sitharaman had said that in strategic sectors, at least one enterprise would remain in the public sector but the private sector will also be allowed. In other sectors, PSEs will be privatised.

To minimise wasteful administrative costs, the number of enterprises in strategic sectors will ordinarily be one to four. Others will be privatised,merged or brought under holding companies, Sitharaman had said.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

Make in Steel 2021

24 February

Click for event info

The new policy is expected to push disinvestment, whether minority or strategic sale (selling the entire stake or a larger slice with management control). There are over 200 Central PSEs out of which only 55 are listed. This gives an opportunity for minority stake sale and gets the Central Public Sector Enterprise (CPSE) listed on stock exchanges besides smaller stake sale in listed CPSEs. At the same time, many CPSEs, listed or unlisted, can be sold strategically.

With the government having a hard time collecting taxes, especially direct taxes, disinvestment can mobilise resources for various schemes. The government can use the proceeds for infrastructure spending.

For the current fiscal, the government hopes to raise Rs 2.10 lakh crore from disinvestment. This includes Rs 1.20 lakh crore from stake sale in CPSEs and Rs 90,000 crore from stake sale in Life Insurance Corporation (LIC) and IDBI Bank. So far in the current fiscal, the government has managed to realise only Rs 17,957 crore.

Also read: What is strategic about divestment?

Also read: Economic Survey is right on overregulation

Image Source

The Union Cabinet cleared the new policy for Public Sector Enterprises (PSEs) last week. A broadsheet for disinvestment is expected to be announced by Finance Minister Nirmala Sitharaman in the Union Budget. The Cabinet Committee of Economic Affairs cleared the Public Sector Enterprises (PSE) policy, said sources. The policy was announced as part of the Atmanirbhar Bharat initiative in May 2020 by Finance Minister Nirmala Sitharaman. The Finance Minister had then said that a list of strategic sectors requiring the presence of PSEs in the public interest would be notified. Sitharaman had said that in strategic sectors, at least one enterprise would remain in the public sector but the private sector will also be allowed. In other sectors, PSEs will be privatised. To minimise wasteful administrative costs, the number of enterprises in strategic sectors will ordinarily be one to four. Others will be privatised,merged or brought under holding companies, Sitharaman had said.4th Indian Cement Review Conference 202117-18 March Click for event infoMake in Steel 202124 February Click for event info The new policy is expected to push disinvestment, whether minority or strategic sale (selling the entire stake or a larger slice with management control). There are over 200 Central PSEs out of which only 55 are listed. This gives an opportunity for minority stake sale and gets the Central Public Sector Enterprise (CPSE) listed on stock exchanges besides smaller stake sale in listed CPSEs. At the same time, many CPSEs, listed or unlisted, can be sold strategically. With the government having a hard time collecting taxes, especially direct taxes, disinvestment can mobilise resources for various schemes. The government can use the proceeds for infrastructure spending. For the current fiscal, the government hopes to raise Rs 2.10 lakh crore from disinvestment. This includes Rs 1.20 lakh crore from stake sale in CPSEs and Rs 90,000 crore from stake sale in Life Insurance Corporation (LIC) and IDBI Bank. So far in the current fiscal, the government has managed to realise only Rs 17,957 crore. Also read: What is strategic about divestment? Also read: Economic Survey is right on overregulation Image Source

Real Estate

01 Dec 2025

Serene, Gardencity to Develop Rs 3 Billion Senior Living Project in Bengaluru

Serene Communities, a leading senior living brand, has partnered with Gardencity Realty to develop a premium senior living community in Budigere, one of Bengaluru’s fastest-growing residential micro-markets. The project will span approximately 300,000 sq ft, with a Gross Development Value of about Rs 3 billion, and will add roughly 250 senior-friendly residences to the city’s growing retirement housing segment.The launch forms part of Serene Communities’ national expansion strategy. The company has 11 new projects under development with a planned investment of Rs 25 billion that will add..

Real Estate

01 Dec 2025

Alliance City Developers Marks Major 2025 Milestones in Vile Parle

Alliance City Developers Realtors has announced significant project milestones and expansions in 2025, underscoring what the company terms a transformational year. The developer completed multiple residential projects and launched two premium developments in Vile Parle (East), one of Mumbai’s most sought-after neighbourhoods.During the year, Alliance Legacy in Matunga (East) received its Occupancy Certificate (OC), while Alliance Eternis in Borivali (West) and Alliance Vista in Vile Parle (East) were granted Completion Certificates (CC), marking final project delivery. Alliance Abhimanyu is ..

Infrastructure Energy

03 Dec 2025

Moro Hub and PwC Middle East Partner to Accelerate Smart City Solutions

Moro Hub, a subsidiary of Digital DEWA, the digital arm of Dubai Electricity and Water Authority (DEWA), has announced a strategic collaboration with PwC Middle East to advance Smart City, Integrated Command Centre (ICC), Critical Infrastructure Monitoring and Internet of Things (IoT) initiatives across the region. The partnership brings together Moro Hub’s digital infrastructure and IoT capabilities with PwC’s global expertise in digital trust, smart city strategy and cybersecurity to support the UAE’s vision for intelligent and sustainable cities.“Our collaboration with PwC Middle Ea..