PSU Privatization Big Move by Government amidst Economic Slowdown

Govt to privatize PSUs and bring down the number to less than 2 dozens from the current 300 present in the country; ready to face challenges that come with it.

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PSU Privatization Big Move by Government amidst Economic Slowdown THE POLICY TIMES

The recent policy by the government of India to privatize major centrally controlled sectors is not going down well with most sections of the society. The recent move to privatize PSUs is also a significant decision that FM Nirmala Sitharaman has taken in the budget session recently. She announced that the PSUs will control only 3-4 key strategic sectors and it will decrease the total numbers to below 2 dozens only. Though it has its own pros and cons, the government decides to stick to this decision.

The Numbers are reduced to Almost Two Dozens

In the recent budget session the finance minister Nirmala Sitharaman said that the Govt is planning to bring down the number of PSUs operating in India by a massive number, so much so that now the count will come down to approximately 24 as compared to the almost 300 existing ones. She visions of improving the economic crash caused by the ongoing pandemic by taking this decision. Only a few strategic sectors like atomic energy, petroleum, telecommunications, insurance, transports, defense, etc. will be under the government-operated sectors and all others will be privatized. 

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Senior Government Officers Said They Have to “Calibrate” Their Strategies

Regarding the changes that are going to come ahead of this decision by the government, many senior officials are sure they will have to “calibrate” their skills to survive the new changes. One of them said, “It will be easier to set up a new consulting company and get manpower from some of the PSUs, instead of taking over the entire baggage”, while another said, “We have to calibrate our strategy. It will also depend on the condition in the sector” regarding the new challenges that are going to come with the new changes.

FM Sitharaman Quite Confident About the Decision

The finance minister of India, Nirmala Sitharaman said she is quite apprehensive of the decision by the government as it will help in utilizing the taxpayers’ money to provide benefits to the common people only. She said, “it is the government’s duty to see every taxpayer’s money be qualitatively spent. Just because we inherited so many loss-making units we cannot continue to invest taxpayers’ money to keep it going and then not be accountable for their performance. No taxpayer would like their money going in units in a state of ICU without signs of improvement in their conditions”.

The Policy Times policy suggestions

  • The new policy comes with some challenges as it will require a change in the consulting firms that previously worked with the PSUs. Engineers and other significant delegates will have to merge their work flexibility to bring out a successful change in implementing this new policy.
  • Also, the government has to be very sharp in dealing with such privation on a large scale as it may not find suitable takers for the same. Given the fact that India is suffering major economic losses, it will not be a wise move if the government does not find ample takers.
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PSU Privatization Big Move by Government amidst Economic Slowdown
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Govt to privatize PSUs and bring down the number to less than 2 dozens from the current 300 present in the country; ready to face challenges that come with it.
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THE POLICY TIMES
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