Statsguru: Value erosion in PSUs can limit govt's disinvestment target

While announcing the economic package to deal with the impact of Covid-19, Finance Minister Nirmala Sitharaman had said that the government would formulate a new policy for public sector undertakings (PSUs). 

All sectors will be opened up for private firms and PSUs will be privatised in non-strategic sectors. This will not only help improve efficiency in the system but also raise resources for the government. The government has budgeted to raise over Rs 2 trillion through disinvestment in the current fiscal year (chart 1). Notably, PSUs have improved their dividend payment in the past few years. 

However, the data shows