PSEs will have to scale-up, build capacities to survive in competitive market: Sitharaman

New Delhi, Jun 09, 2022, IANS

Union Finance Minister Nirmala Sitharaman on Thursday said the Public Sector Enterprises (PSE) in the strategic core sector need to scale-up their performances and if required should enter into a partnership with the private sector to survive.

She was in Gandhinagar to inaugurate 'Nation Building and CPSE's Exhibition'.

Addressing the event, she said, "In the competitive world, even Public Sector Enterprises (PSE) in the strategic core sector have to scale up their skills, capacities, competence, efficiency and if required should enter into partnership with the private sector to survive.

"In 2021, the Central government decided to minimise the public sector role in nation building. So many sectors were opened for private sectors. Those that are still reserved for PSE, even in these sectors the role is going to reduce soon."

She added, "It is high time for the PSEs to prove their strength and competency. If it is not expanded at the right time, it will be difficult for them to survive, or their presence may go unnoticed."

The finance minister also recommended looking out for diversification, expansion, and exploring new opportunities that can keep them afloat in the market.

"When the country was freed from colonial rule, the nation needed to be self-reliant. For that the government made public investment in many sectors. Even though several sectors were reserved for PSUs (PSEs), post-liberalisation and globalisation, many sectors were opened for the private sector. Till 2021, some PSEs enjoyed this protection, now their roles will be minimised. Their role and contribution in nation building is noteworthy," said Nirmala Sitharaman.