Govt. could reduce stake in PSEs to below 51%
In order to unlock the value in select state-run firms, the government is open to reducing its stake in these firms to as low as 40%. The government may also pare its stake in non-strategic companies to as low as 26%. This will aid the government meet the budgeted disinvestment target of Rs 1.05 lakh crore. Recently, the Union Finance minister, Nirmala Sitharaman, opined that the government was considering the option of taking its stake below 51% to an appropriate level on a case-by-case basis in state controlled companies. Public Asset Management Secretary Atanu Chakraborty noted that the government had made separation between control and a 51% stake for the first time.