Public sector enterprises must increase their efficiency and compete with the private sector: FM Nirmala Sitharaman

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Public Sector Enterprises (PSEs) in the country need to improve their overall performance, reduce their overheads and also consider partnership prospects with the private sector, not only to survive but to thrive in the competitive world, the finance minister said. of the Union, Nirmala Sitharaman. Thursday.

Addressing a gathering of senior central EPS leaders (CPSEs) after the inauguration of a four-day exhibition, ‘Nation Building and CPSEs’, the finance minister said India’s EPS must make the most of benefits of new technologies to develop their skills, capabilities, competence and efficiency to go global in the next 25 years and set a benchmark for PES around the world.

Referring to the Public Sector Enterprise Policy – 2021, Sitharaman said PSEs in strategic sectors should explore opportunities for expansion and mergers, and sincerely consider private sector participation. In line with the policy, the Indian government intends to maintain a minimum presence in strategic sectors such as energy, telecommunications, power, banking and minerals. She underlined that it is high time for PSCs to build their skills and seek new opportunities on par with private sector actors, otherwise it will be difficult for them to survive in a highly competitive business environment. Insisting on involving the private sector wherever possible, the Minister of Finance said that in many areas, PSEs can benefit from the efficiency and professionalism of the private sector.

Although the government has identified some key sectors based on the national interest where PSCs will continue to play an important role, even in these sectors the doors are still open for the private sector to some extent, she said. added. “With many sectors opening up to the private sector, ESPs will need to be aware of the level of competition that awaits them,” she said.

Gujarat Chief Minister Bhupendra Patel has said that PES in the country will have to reorient themselves considering that they will not benefit from a monopoly situation with the entry of the private sector in many areas. Patel invited CPSE CEOs to invest and avail the state-of-the-art facilities of India’s first operational smart city – Gujarat International Finance Tec-City (GIFT City) located on the outskirts of the state capital Gandhinagar.

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