The new PSU Policy will categorise the sectors as Strategic and Non-Strategic ones.
The government will retain maximum of four and minimum of one inthe Central Public Sector Enterprises (CPSEs) in Strategic Sectors.
All other Public Sector Undertakings (PSUs) in Non-Strategic sectors will be either privatised privatised or merged or brought under the holding companies.
It is with an aim to minimise the administrative cost of the Central Government.
The Strategic sector PSUs in India are
Arms & Ammunition of defence equipment
Defense aircraft & warships
Atomic energy
Applications of radiation to agriculture, medicine and non-strategic industry
Railways
Companies in which Central Government holds 51% stake are known as CPSEs or PSUs.
Privatisation means migration from the Public to Private Sector through the transfer of ownership, management and control.