The government proposes to reduce its stake in central public sector enterprises (CPSEs) to 49%, in three years.
This plan excludes state-run companies in sectors such as defence and oil. This proposal will help state-run companies as their autonomy will increase and the government, too, will be benefited as divesting can raise the stake of their remaining holding.
NITI Aayog is spotting the companies for divestment. Currently, the government own 51% stake or more in approx 250 CPSEs. In areas of strategic importance, the government will most likely retain a majority stake like in Bharat Petroleum, Hindustan Petroleum. While, NTPC, Power Grid Corporation, SAIL are some of the companies where the government will likely reduce its stake.
