The minister stated that the public sector firms that were privatised between the years of 1994 and 2004 are now being managed by boards that are being professionally governed, and that these companies have only become better since being privatised.
Nirmala Sitharaman, the Minister of Finance, stated on Friday that the goal of the government’s disinvestment policy is not to eliminate any particular firm or unit, but rather to make such entities more productive and driven by professionals.
The minister stated that the public sector firms that were privatised between the years of 1994 and 2004 are now being managed by boards that are being professionally governed, and that these companies have only become better since being privatised.
During her speech at the ‘Azadi ka Amrit Mahotsav’ event, which was held as a part of the Department of Investment and Public Asset Management’s (DIPAM) iconic week celebrations, Sitharaman stated that the privatisation of CPSEs is intended to ensure that these companies are operated in an efficient and cost-effective manner.
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The current strategy for disinvestment is based on the idea that an operating unit will not be shut down. The economy requires that many of these types of businesses, in addition to a great deal more of them.
In a speech that was webcast from Bengaluru, Sitharaman said, “So if we want to have that activity done professionally and open up spaces for people to come and do it, our interest is not to shut down, we want to prime it up, and we want to have them run far more efficiently so that contributions can be made to the economy.” “Our interest is not to shut down, we want to prime it up, and we want to have them run far more efficiently so that contributions can be made to the economy
She explained that the fundamental idea behind divestment is to place control of businesses that are through the process of privatisation in the hands of individuals who are able to successfully operate the businesses, attract new investment, and maintain the same level of output.
Sitharaman explained that the purpose of this move is not to shut the facility down but rather to create the chance for greater and more extensive investments to be undertaken.
In addition, the government is preparing to sell key stakes in over a half dozen different corporations. Shipping Corp, CONCOR, Vizag Steel, IDBI Bank, the Nagarnar Steel Plant of NMDC, and HLL Lifecare are among these companies.