March 18, 2020 at 12:41 am | Latest Business News

Government gives in-principle approval for privatisation of 24 CPSEs

New Delhi: The Government has given ‘in-principle’ approval for Privatisation of 24 CPSEs including Subsidiaries, Units and Joint Ventures with the 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 up-gradation and efficient management practices; and would thus add to the GDP of the country.

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