60 Central Public Sector Enterprises (CPSEs) under the Ministries of Fertilizers, Textiles, Chemicals and Petrochemicals, Pharmaceuticals and Commerce are likely to be included in the preliminary list for privatization or closure. For this, the government is preparing to implement an enterprise (PSE) policy in non-strategic sectors.
Sources close to the matter said there are around 175 CPSEs in the non-strategic sector, of which one-third will eventually wind up and the rest viable units will be privatized, while some non-profits will be placed in the public sector.
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A group of officials from NITI Aayog, Department of Public Enterprises and administrative ministries is identifying companies whose PSUs will be privatized or closed as per the policy. The strategic sector policy unveiled in the Budget for FY 2022-23 states that the government has minimal presence in four broad sectors, while the rest may be privatized or merged or closed.
According to sources, all the nine CPSEs under the Ministry of Fertilizers, including Madras Fertilizers and National Fertilizers, are likely to be privatized. Given the large scale fertilizer imports by the country, the government has been trying to increase domestic manufacturing in recent years and these companies may be attractive to the private sector given the captive market for the products.
Among the CPSEs under the Textiles Ministry, the Center will go for the closure of the ailing National Textile Corporation (NTC), which has 23 mills with obsolete technology. The two trading companies that come under the commerce ministry will be shut down as their businesses have become impractical over the years.