PSUs identified, FinMin to take call on stake sale: Niti Aayog

NEW DELHI: Government think tank Niti Aayog today said public sector units to be put up for strategic sale have been identified and now it is up to the Finance Ministry to start the process of their privatisation.

Vice-Chairman Arvind Panagariya said that Niti Aayog has pushed strongly for closure of many sick PSUs.

"We have pushed very strongly for closure of many of the sick units. That is something that has been talked about for decades but has not happened. It's now happening," he said here at the Economic Editors Conference.

The former Chief Economist at the Asian Development Bank further said that Niti Aayog has also identified units for strategic sale, and the Cabinet has given its approval.

"So, next step will be for the Finance Ministry to start privatising these public sector units," he added.

The Cabinet in September, cleared strategic disinvestment of Allahabad-based Bharat Pumps and Compressors Limited. It is the first PSU to be put up for strategic sale by the Narendra Modi government, setting in motion the process of privatisation of the PSU.

Strategic disinvestment denotes sale of substantial portion of government shareholding in identified central public sector enterprises (CPSEs), up to 50 per cent or more, along with transfer of management control.

The Centre has set a target of Rs 20,500 crore from strategic sale in loss-making and sick PSUs this fiscal. However, according to officials, it is unlikely that even the process of majority stake sale in Bharat Pumps will be completed in the current financial year.

Panagariya also said that Niti Aayog is pushing for reforms in Medical Council of India.

"There is a big need of reform. So it is being reformed wholesale," he said.

Among others, the Aayog is also working on bringing in reforms in UGC and AICTC.