The Government has given ‘in-principle’ approval for Privatisation of 24 CPSEs including Subsidiaries, Units and Joint Ventures with sale of majority stake and transfer of management control.

This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Lok Sabha today.

The Government follows a policy of strategic disinvestment of CPSEs, which are not in ‘priority sectors’. For this purpose, NITI Aayog has been mandated to identify such CPSEs based on the criteria of (i) National Security; (ii) Sovereign function at arm’s length, and (iii) Market Imperfections and Public Purpose.

Strategic disinvestment of CPSEs is being guided by the basic economic principle that Government should discontinue in sectors, where competitive markets have come of age and economic potential of such entities may be better discovered in the hands of strategic investor due to various factors such as infusion of capital, technological upgradation and efficient management practices; and would thus add to the GDP of the country.

Strategic disinvestment: government to transfer majority stakes and management control in selected public enterprises to private strategic investors. The Government has granted in-principle approval for privatisation of multiple CPSEs by sale of majority stake and transfer of management control, applying a policy of strategic disinvestment for enterprises outside priority sectors. NITI Aayog is mandated to identify candidates using criteria of national security, sovereign functions at arm's length, and market imperfections or public purpose; the policy aims to enable private strategic investors to bring capital, technology and management efficiencies where competitive markets can better realise economic potential.