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Union Minister announced that government has approved a policy of strategic disinvestment of public sector enterprises that will provide a clear roadmap for disinvestment in all non-strategic and strategic sectors.

Aim

The government aims at making use of disinvestment proceeds to finance various social sector and developmental programmes and also to infuse private capital, technology and best management practices in Central Government Public Sector Enterprises.

Policy on Strategic Disinvestment

Fulfilling the governments’ commitment under the AtmaNirbhar Package of coming up with a policy of strategic disinvestment of public sector enterprises, the Minister highlighted the following as it’s main features :

• Existing CPSEs, Public Sector Banks and Public Sector Insurance Companies to be covered under it.
• Two fold classification of Sectors to be disinvested 

Strategic Sector : Bare minimum presence of the public sector enterprises and remaining to be privatised or merged or subsidiarized with other CPSEs or closed.

Following 4 sectors to come under it 

• Atomic energy, Space and Defence
• Transport and Telecommunications
• Power, Petroleum, Coal and other minerals
• Banking, Insurance and financial services

Non- Strategic Sector : In this sector, CPSEs will be privatised, otherwise shall be closed.

Source: PIB