PSU Privatisation Policy: On May 17, 2020, Finance Minister Nirmala Sitharaman declared that the government will hold a maximum of four Central Public Sector Enterprises (CPSEs) in Strategic Sectors and the other Public Sector Undertakings (PSUs) in Non-Strategic sectors are going to be privatized with the goal to minimize the administrative cost of the Central Government.
Here is a list of PSU’s likely to go private
1] Air India
Air India is the flag carrier , whose headquarters are at New Delhi. It is controlled by Air India Limited, a government-owned operation, and operates a line of Airbus and Boeing aircraft which serves 102 domestic and international destinations
- Established in the year- 1930
- Founder- J. R. D. Tata
- Will be privatised 100%
The government is intending to sell its 100% stake in Air India. The national carrier has been in losses from when it mergd with domestic operator Indian Airlines in the year 2007.
The India Tourism Development Corporation is a hospitality, retail and education company recognized by Government of India, under Ministry of Tourism. It owns more than 17 properties under the Ashok Group of Hotels brand, across India.
- Established in the year- 1966
- Founder- G. Kamala Vardhana Rao
- Will be privatized 87.03%
The government will examine privatizing Delhi’s Hotel Ashok, a five-star property situated in the heart of the capital.
Under a notice to the BSE, state-owned India Tourism Development Corporation Ltd (ITDC) announced the department of investment and public asset management is in the ongoing process of appointing of a consultant to investigate the possibilities of handing operation and management or sub-leasing the property.
BEML Limited, previously known as Bharat Earth Movers Limited, is an Indian Public Sector Undertaking, with its headquarters in Bengaluru, Karnataka, India. It produces a variety of heavy equipment like those used for earthmoving, transport, and mining
- Established in the year-1964
- The government will disinvest 26% equity share capital of Bangalore-based public sector enterprise Bharat Earth Movers Limited (BEML) out of its shareholding of 54.03%, along with management control
Central Electronics Limited is a Union Government controlled engineering company based in India with its manufacturing system located at Sahibabad, district Ghaziabad in Uttar Pradesh. Central Electronics Ltd is a pioneer in India in the areas of ferrites,solar photovoltaics, and piezoceramics
- Established in the year-1974
- Founder- Nalin Shinghal
- Will be privatized 100%
The government will privatize Central Electronics Ltd, by selling its 100 percent stake with management control and has summoned the Expression of Interest.
Hindustan Prefab Limited (HPL), one of the oldest CPSEs, functions under the administrative control of the Ministry of Housing & Urban Affairs. Pioneer of Prefab technology in India
- Established in the year-1948
- Will be privatized 100%
Hindustan Antibiotics Limited, located in Pune, India, is the primary public sector drug manufacturing company established by the Government of India. It was the initial company in India to launch a recombinant DNA product, rHU-Erythropoietin. The company launched new products like Halpen, Haltax, Hexpan in 2008
- Established in the year-1954
- Founder- Neerja Saraf
The government had decided to close Indian Drugs and Pharmaceutical Ltd as well as Rajasthan Drugs and Pharmaceuticals Ltd. It had also declared the strategic sale of Hindustan Antibiotics Ltd and Bengal Chemicals and Pharmaceutical Ltd.
Bharat Pumps & Compressors Limited is a Miniratna Company, Public Sector Undertaking of the Government of India. The company produces Reciprocating pumps, Reciprocating compressors, Centrifugal pumps and high-pressure seamless Gas cylinders
- Established in the year- 1970
- Will be privatized 100%
Moving forward with its ambitious plan to market loss-making state-owned units, the government has begun the process of strategic sale or privatization of the PSU– Bharat Pumps and Compressors
Cement Corporation of India Limited is known as a public sector enterprise of the government of India. The company was chartered as a wholly government-owned corporation, with the objective of setting up cement units to help gain self-sufficiency in cement production in the country
- Established in the year- 1965
- Founder- Government of India
The government declared that it is planning to sell off non-operational units of Cement Corporation of India (CCI) as part of the strategic sale of loss-making companies.
Updated News regarding PSU Privatisation
The government has presented the first list of 12 public sector undertakings set to be privatized, as declared in the Union Budget 2021 presented by Finance Minister Nirmala Sitharaman in the month of February. The list covers public sector banks and insurance companies that are part of the Centre’s ambitious plan to privatize PSUs to meet the Rs 1.75 lakh crore disinvestment target.
Department of Investment as well as Public Asset Management and the Core Group of Secretaries on Divestment, directed by the cabinet secretary, will be considered the submitted list.
The NITI Aayog is the government’s trusted body with the strategic task of recommending PSUs’ names to be merged or privatized.
The list, however, does not include autonomous organizations, regulatory authorities, trusts, and development financing institutions like the FCI and the AAI.