NITI Aayog has supported strategic sale of PSUs and it also advocated a three-year action agenda for closing of select loss making state run companies.
Benefits Of Strategic Sale
Strategic area focus: The proposed action is in the philosophy that government should operate only in strategic sector and leave the other sectors for the private sector companies.
Bridge fiscal deficit: The move will help in bridging the fiscal deficit target of the government and thus bring the stability in the economy.
Improve quality and promote competition: The move will also reduce the misuse of taxpayer’s money to fund loss-making companies, improve the quality of service delivery and promote competition in the market.
Professionalism: The collaboration with the private sector will improve the functioning, efficiency and professionalism of these companies and reduce political interference in their day to day working.
