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Govt Company Definition Change for Faster Disinvestment
30 Jan
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.
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.
Furthermore, the survey highlights that the proceeds generated from such disinvestments could be strategically reinvested. It also underscores the critical importance of asset and equity monetisation to secure non-debt capital receipts.
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