Shine a dozen: Capex push in the works for next-gen PSUs

New Delhi: The Centre is planning to promote next-generation public sector undertakings (PSUs) in the critical minerals, renewables, aerospace, electronics and defence sectors by infusing more capital, helping them expand and facilitating their technological enhancement to align with India's medium- to long-term economic goals.

It has shortlisted about a dozen such PSUs, including IREL India, Bharat Electronics Ltd, Mazagon Dock Shipbuilders, Nuclear Power Corporation of India Ltd, REC Ltd and Central Warehousing Corporation, for systemic and technical reforms, according to officials.

The PSUs have been chosen from the sectors which are expected to have strategic importance for the country in the coming years and are likely to play a key role in economic growth, they said.


"Our first-generation PSUs are doing well and working well, and there is a need to create next-generation PSUs in areas which are critical for the next phase of economic reforms," said a senior official, who did not wish to be identified.

The initiative is part of a series of reforms being initiated by the Centre under the direct supervision of the Prime Minister's Office to achieve the vision of India 2047, the official said.

The Department of Public Enterprises will undertake a detailed overview along with the ministries concerned, after which the NITI Aayog will help prepare a roadmap for the exercise. The Centre may expand the list during the review, according to the official.

"The idea is to make existing PSUs bigger, which can work in sync with reforms in sectors critical for the country's manufacturing, exports and export-dependent sectors," said the official. For instance, IREL India would tie in well with initiatives like the National Critical Mineral Mission.

In the past three years the Centre has taken a similar initiative for the fertilizer sector amid the Russia-Ukraine war, infusing capital into many closed units and making them functional. As a result, in 2023-24, India recorded its highest domestic production of urea, exceeding 314 lakh metric tonnes.

In his Independence Day speech, Prime Minister Narendra Modi had announced the formation of a task force for next-generation reforms to evaluate all current laws, rules and procedures related to economic activities to deliver results within a set timeline. On Monday, he set the ball rolling by chairing a meeting with senior Union ministers, secretaries and economists to deliberate on the roadmap for next-gen reforms.