Case to divest steel sector PSUs, defence sector can wait - Govt officials
This story was originally published at 20:02 IST on 20 November 2024
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--Defence secy: No immediate need to divest PSUs in defence sector
--CONTEXT: Defence Secy Singh's comments at curtain-raiser of FICCI's AGM
--Defence secy: Need reforms for ease of doing business in defence sector
--Steel secy: There is a case to divest some steel plants
--CONTEXT: Steel Secy Poundrik's comments at curtain-raiser of FICCI's AGM
--Steel secy: Some loss-making PSUs in steel sector must be divested
NEW DELHI – There is a case for the government to divest stake in public sector enterprises operating in the steel sector, Steel Secretary Sandeep Poundrik said Wednesday. In the defence sector, on the other hand, there is no immediate need to divest state-owned enterprises, Defence Secretary Rajesh Kumar Singh said.
Instead of disinvestment, the defence sector needs reforms to facilitate ease of doing business, Singh said. Entities within the defence sector that are in the government's divestment pipeline include BEML Ltd, Garden Reach Shipbuilders & Engineers Ltd, and Mishra Dhatu Nigam Ltd.
Some of the major PSUs up for divestment in the steel sector are Rashtriya Ispat Nigam Ltd and NMDC Steel Ltd. "There is a case for the government to divest the loss-making PSUs," Poundrik said.
The government has been slow on PSU divestment in the last few years. In fact, it decided to remove the Budget estimate for divestment receipts in February. The government has substituted this with 'miscellaneous capital receipts' that include proceeds from PSU divestment as well as asset monetisation. For 2024-25 (Apr-Mar), the government has projected miscellaneous capital receipts at INR 500 billion. End
Reported by Krity Ambey
Edited by Avishek Dutta
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