Union Finance Minister Nirmala Sitharaman. (Image: PTI)
To ease the pathways to disinvestment, the federal government has moved the Department of Public Enterprises beneath the Finance Ministry
- News18.com
- Last Updated: July 8, 2021, 19:55 IST
-
FOLLOW US ON:
The Department of Public Enterprises (DPE) is now the sixth vertical inside the Ministry of Finance after it was unhitched from its dad or mum ministry, the Heavy Industries and Public Enterprises Ministry, forward of the large Cabinet reshuffle undertaken by the Narendra Modi authorities on the Centre. The shifting of the division is being seen as a part of the strikes to assist the Centre obtain its disinvestment goal. Here’s what you want to know.
What Changes With This Merger?
According to reviews, the allotment of DPE to the Finance Ministry has been executed with a watch on attaining higher management and evaluation of state-owned companies. The Modi authorities goals to undertake a assessment of capital expenditure plans of the central public sector enterprises (CPSEs) and draw up methods for reviving, or promoting them.
With DPE coming beneath its wings, the finance ministry now contains six departments, financial affairs, income, expenditure, funding and public asset administration and monetary companies, being the opposite 5.
On the opposite hand, the Ministry of Heavy Industries and Public Enterprises, beneath which DPE was hitherto functioning, will now be generally known as solely the Ministry of Heavy Industries.
How Many CPSEs Are There In India?
According to the Public Enterprises Survey for 2018-19 that was tabled final yr in Parliament, there have been a complete of 348 CPSEs until March 2019 of which 249 have been operational. Of the remaining, 86 CPSEs have been beneath development and 13 CPSEs have been shuttered or beneath liquidation.
The survey stated there have been 178 profit-making CPSEs, whose earnings stood at Rs 1.74 lakh crore throughout 2018-19, a development of near 12 per cent over the earlier fiscal.
What Is The Government’s Disinvestment Roadmap?
Presenting the 2021 Budget in Parliament, Finance Minister Nirmala Sitharaman had introduced that the Centre is seeking to increase Rs 1.75 lakh crore on this fiscal by the sale of its stake in PSEs and monetary establishments.
Of the overall goal, the Centre intends to earn as much as Rs 1 lakh crore by promoting its stake in public sector banks and monetary establishments whereas CPSE disinvestment receipts are anticipated to yield the remaining Rs 75,000 crore.
Sitharaman had stated that strategic disinvestment can be accomplished within the 2021-22 fiscal in BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, and many others.
The Centre has additionally determined to launch an preliminary public providing (IPO) for the Life Insurance Corporation of India (LIC) and residual stake sale in IDBI Bank on this fiscal.
How Will CPSEs For Disinvestment Be Identified?
The Centre has recognized 4 strategic sectors — atomic power; house and defence; transport and telecommunications; energy, petroleum, coal and different minerals; and banking, insurance coverage and monetary companies — the place a naked minimal variety of CPSEs might be retained. CPSEs in all different sectors will both be privatised or merged with different CPSEs or closed.
The Centre has stated that the NITI Aayog has been tasked with developing with the record of CPSEs that may be taken up for strategic disinvestment. Further, the Narendra Modi authorities additionally goals to incentivise states to undertake disinvestment of their public sector corporations.
Read all of the Latest News, Breaking News and Coronavirus News right here
