State-run companies need to be kept at an arm's length from their administrative ministries and should be given more freedom and flexibility, said NITI Aayog CEO Amitabh Kant.

He said ‘Make in India’ will not succeed without the public sector and it should be given more freedom and flexibility. “The government must keep a hands-off approach and increase professionalism,” he said at an event, The Economic Times reported.

He also said that there is a need to bring in outstanding professionals as directors on the board of the companies. “The management needs to bring in innovation, structure and take on the world,” he said. He added that private and public sector companies should be treated similar and central public sector enterprises (CPSEs) should be allowed to die if they fail to compete. Questioning the current system of evaluation of CPSEs, Kant said, “The current MoU system needs to be done away with.”

NITI Aayog will play a significant role in the process of disinvestment this fiscal. Finance minister Arun Jaitley in his Budget 2016 speech had said that the Aayog will identify CPSEs for strategic sale. The government aims to collect Rs 56,500 crore through disinvestment in PSUs this fiscal.