The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval to Alternative Mechanism, who would decide on the quantum of disinvestment in a particular Central Public Sector Undertaking (CPSE) on a case by case basis subject to Government retaining 51 percent equity and management control. This is in addition to the present functions performed by Alternative Mechanism as has been approved by CCEA in August, 2014.

This would reduce speculation and overhang and expedite the disinvestment process.

Retention of majority equity and management control directs the Alternative Mechanism to decide disinvestment quantum, expediting minority stake sales. An Alternative Mechanism will determine the quantum of disinvestment for minority stake sales in Central Public Sector Undertakings on a case-by-case basis, subject to the Government retaining 51 percent equity and management control; this supplements prior Alternative Mechanism functions and aims to reduce speculation and expedite the disinvestment process.