Strategic PSUs should look to scale up, boost efficiency: FM Sitharaman

The public sector undertakings (PSUs) in strategic sectors should look at scaling up possibilities, use of technology, and set fresh benchmarks for PSUs around the world, Finance Minister Nirmala Sitharaman said.

“The clear identified core sectors in which public sector would remain will have to now look at opportunities, newer areas of development, scaling up possibilities, and looking at ways in which you can benefit from web 3.0, industrial revolution 4.0, deep diving into deep data,” Sitharaman said at the Azadi ka Amrit Mahotsav celebration in Gandhinagar.

Sitharaman said PSUs must derive maximum benefit from newer tech to scale up their efficiencies in the next 25 years to go global and set a fresh benchmark for public sector enterprises anywhere in the world.

According to the Public Sector Enterprises policy, 2021, strategic sectors — where the government intends to keep bare minimum presence — include energy, telecom, power, banks, and minerals.

Sitharaman asked the Department of Public Enterprises (DPE) to engage with public sector enterprises (PSE) in strategic sectors to explore scope for expansion, amalgamation, and look at private sector participation wherever possible.

“It’s time for PSEs to show that you are very keen to improve on your professionalism as much you have done between 1991 and now. And where possible also bring down overheads and look at private participation together with what you are doing. There are several aspects where you can benefit from the efficiency of the private sector,” Sitharaman said.

The minister said strategic sectors had been identified based on national interest, and the government would continue to have its presence in these sectors. However, even in these sectors, the doors are opened for the private sector to operate. “I would raise a flag for PSEs. The moment you are opening up sectors for private sectors, we in the public sector will have to be conscious of the level of competition before us,” Sithatraman said. With this consciousness, PSUs will be able to overcome the challenges and ensure efficiencies lie with them, she said.

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