Union Finance Minister Nirmala Sitharaman has highlighted the urgency for a new rational policy “where all sectors are accessible for private sector, however public sector enterprises (PSEs) play a vital role in defined areas”.
The government is expected to announce a pristine public sector policy for shaping India ‘self-reliant’ (Atmanirbhar) during COVID-19 crisis. “Now, Indian public companies can list their securities directly in foreign jurisdictions. Private companies which list Non-Convertible Debentures on stock exchanges will not be regarded as listed companies,” Sitharaman announced.
According to the new policy that would be announced by the government, a list of strategic sectors requiring the existence of Public Sector Enterprises for public interest will be apprised. “In strategic sectors, at least one enterprise to remain in the public sector however the private sector to be allowed. In other sectors, PSEs to privatised,” she said.
As per Union minister, the swift action to control the pandemic has diminished the compliance burden under different provisions of Companies Act. A recent announcement by Central government in various tranches about economic stimulus policy is pivoted on seven different steps taken by the government which includes MGNREGA, health & education related steps, business & Covid-19, decriminalization of Companies Act, ease of doing business, public sector enterprises, state government resources.
Recently, Indian Prime Minister Narendra Modi has announced an economic package of whopping amount of Rs 20 lakh crore which is around 10% of GDP. This stimulus will help individuals and boost businesses deal to recover the losses due to Covid-19 pandemic and aimed to convert “crisis into an opportunity”.
This Atmanirbhar Bharat Abhiyan (Self-reliant India Mission) by the Indian government would cover industry and businesses of all sizes. It would motivate farmers, entrepreneurs, and the middle class section specifically.
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