What change is recommended for the definition of a government company?

The Economic Survey recommends redefining a 'government company' to a 26% ownership threshold from the current 51% for listed CPSEs.

How will the proposed definition change help CPSEs?

The proposed change aims to allow for faster disinvestment and potentially improve efficiency by lowering the ownership threshold for government companies.

What is suggested for improving capital receipts?

The Economic Survey stresses that asset and equity monetisation are crucial for securing non-debt capital receipts.

Home / Business and Economy / Govt Company Definition Change for Faster Disinvestment

Govt Company Definition Change for Faster Disinvestment

30 Jan

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Summary

Recommends lowering government ownership for listed CPSEs to 26%.
Suggests phased disinvestment leading to privatisation without legal changes.
Stresses asset and equity monetisation for non-debt capital receipts.

Govt Company Definition Change for Faster Disinvestment

The Economic Survey has recommended a significant shift in defining a 'government company.' It proposes lowering the ownership threshold for listed Central Public Sector Enterprises (CPSEs) from 51% to 26%.

This redefinition is intended to facilitate faster disinvestment processes. The survey suggests a strategy of phased disinvestment that could lead to privatisation without requiring new legal frameworks.