The Union Cabinet headed by Prime Minister Narendra Modi approved the new policy for a new process of strategic disinvestment with a view to expedite privatisation of selected Public Sector Undertakings (PSUs). Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary.
- Objective: To streamline and speed up the process and reduce the role of administrative ministries.
- Nodal department: The Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance was made the nodal department for the strategic stake sale.
- Inter-ministerial group on disinvestment: DIPAM secretary Mr Anil Khachi will co-chair the inter-ministerial group on disinvestment, along with the secretary of administrative ministries concerned.
- DIPAM and NITI Aayog (National Institution for Transforming India) will jointly identify PSUs for strategic disinvestment. Earlier, only NITI Aayog used to identify PSUs.
- Data centres will be set up for bidders to look for information on the PSUs up for sale.
- Disinvestment proceeds: The government has set a target of mobilising Rs 1.05 lakh crore from disinvestment proceeds. It will help the government to achieve the target of keeping fiscal deficit at 3.3% of the GDP (Gross Domestic Product) in the current fiscal year ending March 31, 2020.
- Background: Group of secretaries have agreed to sell the government’s entire 53.29% stake in Bharat Petroleum Corp Ltd, 63.75% stake in Shipping Corporation of India (SCI), 30% in Concor, 100% in North Eastern Electric Power Corporation Limited (NEEPCO) and 75% in THDC (Formerly Tehri Hydro Development Corporation Limited).
About Ministry of Finance:
♦ Founded: 29 October 1946
♦ Minister In-Charge: Nirmala Sitharaman