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Centre’s privatisation drive to commence with profit making PSUs

According to reports, the government aims to first focus on privatising profit-making state-run companies.

This is however a turn around from the strategy of focusing on loss-making units announced earlier.

Moreover the Centre has an ambitious plan to monetise around 100 government-owned assets as part of the monetisation plan.

Further, the target is to achieve Rs 2.5 trillion investment.

List of public sector units identified for privatisation include companies in non-strategic sectors.

It also comprises those that have already received the cabinet’s approval for stake sale.

Currently, the government is working on Rs 111 trillion national infrastructure pipeline fund.

Prime Minister Modi had stated that public sector enterprises are making loss and several of them need support of public money.

For 2021-22, the Centre has targeted Rs 1.75 lakh crore in revenue from disinvestment, privatisation and asset monetisation.

The disinvestment of companies including the Shipping Corporation of India and the Container Corporation of India will finish in 2021-22.

Meanwhile, the government will take up the privatisation of two public sector banks and one general insurance company in 2021-22.

In fact, private sector brings investment and best global practices with them as per Modi.

Also, the cabinet has approved for some major strategic stake sales in companies like Air India, Bharat Petroleum Corporation and IDBI Bank.

Moving forward, the government will maintain a presence in a handful of strategic sectors including atomic energy, space and defence.

The sector further comprises transport and telecommunications, power, petroleum, coal and other minerals and banking, insurance and financial services.

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