Cabinet note on strategic sector may be in effect soon
As per the different sources the Union Cabinet plans to take up the proposal to define ‘strategic sectors’ after months of discussions . sources of different media said that the cabinet note is now ready after various inputs from 49 central ministries and departments. it could be available for consideration in next months.
Sources said “Banking and insurance will be designated as strategic sectors,”. if it’s true then there would only be four state-owned banks and insurance companies each.
To achieve this, the government plans to go for further consolidation and may privatise some of its companies in the financial sector.
Apart from banking and insurance,other sectors like Indian Railways, oil and gas, defence, space, and atomic energy are also expected to be categorised as strategic sectors.
Finance Minister Nirmala Sitharaman said, “ In the notified strategic sectors, there would be only one to four public sector enterprises. They will be merged or brought together, so there won’t be mushrooming of the public sector,”.
The government plans a complete exit from ‘non-strategic’ sectors. There is no fixed timeline for when the government has to reduce or exit its presence.
Currently, there are 12 PSBs remaining after the consolidation of PSBs. There may be more consolidations or privatization.