The Government has decided that the disinvestment proceeds with effect from the fiscal year 2013-14 will be credited to the existing “public account” under the head National Investment Fund (NIF) and will be used for subscribing to the shares being issued by the Central Public Sector Enterprises (CPSEs) including Public Sector Banks (PSBs) and Public Sector Insurance Companies (PSICs), on rights basis so as to ensure 51% ownership of the Government is not diluted; and for recapitalisation of PSBs and PSICs.

This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Rajya Sabha today.

DSM/RS/ka

(Release ID :92539)

Majority government ownership preserved by routing disinvestment proceeds into a fund for share subscription and recapitalisation. The Government directed that disinvestment receipts from fiscal 2013-14 be credited to the public account head National Investment Fund and used to subscribe to shares of CPSEs, including Public Sector Banks and Public Sector Insurance Companies, on a rights basis to preserve 51% ownership, and to recapitalise those banks and insurers.