PSEs barred from buying state-owned firms

New Delhi, April 21

The Finance Ministry has barred public sector enterprises from bidding for other Central Public Sector Enterprises (CPSEs) which are on the block for privatisation, as it would defeat the very purpose of the disinvestment policy.

Stating that transfer of management control from the government to any other government organisation or state government may continue the “inherent inefficiencies” of state-run firms, the ministry said such transfer would defeat the very purpose of the new PSE policy.

“As a general policy, Public Sector Enterprises (PSEs) (Central /State/Joint)/State Governments/Cooperative Societies controlled by the Governments … are not permitted to participate in the strategic disinvestment/privatisation of other PSUs as bidders unless otherwise specifically approved by the Central government in public interest,” the Department of Investment and Public Asset Management said. —