More Privatisation on the cards?
Distilled Policy Brief
- The core group of secretaries on disinvestment approved the disinvestment of five public sector undertakings, including the entire government shareholding in BPCL, SCI, NEEPCO, and THDC, and 30% in Concor.
- In 2003, the Supreme Court ruled that the government could not reduce its ownership below 51% in HPCL and BPCL without amending the specific nationalisation laws that formed them.
🎯 Prelims High-Yield Examination Points
Privatisation of PSUs like BPCL, SCI, NEEPCO, THDC, and Concor; Supreme Court's 2003 ruling on nationalisation Acts; Role of Repealing and Amending Acts passed between 2014 and 2019 in removing legislative barriers.
⚖️ Mains Analytical & Syllabus Linkages
Examine the policy shift towards PSU disinvestment and strategic sale in India. Discuss the implications of repealing historical nationalisation Acts on executive power, legislative oversight, and economic reforms.
🎯 UPSC Prelims Practice Drill
With reference to the disinvestment and privatisation of Public Sector Undertakings (PSUs) in India, consider the following statements: 1. The Supreme Court ruled in 2003 that the executive cannot reduce government ownership below 51% in PSUs created through specific nationalisation Acts of Parliament without statutory amendment or repeal of those Acts. 2. The parliamentary repeal of relevant nationalisation Acts fulfills the legal requirement necessary for the executive to proceed with the privatisation of such nationalised PSUs. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is correct: In 2003, the Supreme Court ruled that the central government could not reduce its shareholding below 51% in nationalised companies like HPCL and BPCL without amending or repealing the specific parliamentary Acts that created them. Statement 2 is correct: The repeal of these specific nationalisation Acts via Repealing and Amending Acts passed by Parliament removes the statutory bar, thereby satisfying the condition set by the Supreme Court to allow privatisation.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.