Faltering on privatisation

Tweaking tax laws alone will not help

Union Finance Minister Nirmala Sitharaman had spelt out the government’s new policy on strategic disinvestment in central public sector enterprises (CPSEs) in this year’s Union Budget. The policy, first announced in 2020, intends to keep a bare minimum presence of CPSEs in strategic sectors and privatise the rest or shut down. The government classified sectors such as atomic energy, defence and space, transport, power and minerals, and financial services as strategic. The policy was applauded by most stakeholders and commentators as it reflected a clear break from the past in the way the government approached the issue of disinvestment and