Abstract: - The India Union Budget 2020-21 has announced a new PSU policy in its Macroeconomic Framework Statement2021. In the Budget Highlights, it stated about privatisation of public sector enterprises under the umbrella of AtmanirbharBharat Abhiyan and under the Budget Receipts, it is estimated to generate INR 1,75,000 crores through disinvestment. TheNew PSU policy envisagesthe Public SectorEnterprisesto be operating only in the Strategic Sectors namely Atomic Energy,Space and Defence; Power, Petroleum, Coal and Other Minerals; and Banking, Insurance and Financial Services. Instrategic sectors, the presence of Public Sector Enterprises would be restricted to a maximum number of four. Theremaining units would be privatised, merged or closed. Besides, the PSUs in non-strategic sectors will be either privatised orclosed. However,the scepticism here isthat if the option of privatisation of Public Sector Unitsis exercised, would it promoteefficiency of operations and thereby create value addition in the economy? Instead can public sector units be reformed andstrengthened to create value during turbulenttimes?Keywords: Public Sector, Disinvestment, New PSU policy, Atmanirbhar Bharat Abhiyan, Aspriational Districts Programme