Following the new policy that focuses on privatisation in non-core sectors, the central government may reduce the number of PSUs from 300 to just around two dozen closing the loss-making state-run enterprises.

A media report quoted top government sources as saying that the final decision will be taken by the Union Cabinet on the basis of the recommendations by NITI Aayog.

NITI Aayog has been given the responsibility to identify the next set of companies to be offered for strategic sale.

In the Union Budget 2021, presented in the Parliament recently by Union finance minister Nirmala Sitharaman, it has been clearly mentioned that there will be only four key strategic sectors.

In the key segments, there will be a maximum of 3-4 public sector units.

The government will move out in all other areas where there are PSUs and there will be less than two dozen PSUs left, the report said.

Union finance minister Sitharman has identified atomic energy, transport, telecommunications, space, defence, petroleum, coal & other minerals, power, banking, insurance and financial services as strategic sectors.

According to the new policy in the strategic sectors, there will be bare minimum presence of the public sector enterprises.

The remaining CPSEs in the strategic sector will be privatised or merged or subsidiarised with other CPSEs or closed.

In non-strategic sectors, CPSEs will be privatized or the enterprises will be closed, the report said.

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