Targetting big-ticket strategic sales, the government had announced a major shift in the budget in its disinvestment policy to allow it to reduce its stake to less than 51% in state-run firms. In some non-strategic companies we can go below 51% irrespective of whether the government directly or indirectly holds a majority stake, said the official. In her budget speech, Finance Minister Nirmala Sitharaman had said that strategic disinvestment of select CPSEs would remain a priority and that the government would offer more CPSEs for strategic participation by the private sector. Government has also decided to modify present policy of retaining 51% stake inclusive of stake from government-controlled institutions. In 2017-18, ONGC acquired the Centre's 51% stake in Hindustan Petroleum for ₹36,900 crore, and helped Dipam garner a record ₹1 trillion in divestment proceeds.

Source: Mint September 29, 2019 05:15 UTC