NEW DELHI: The government is planning a major overhaul of the definition of state-run companies where an entity will continue to qualify as public sector enterprise (PSE) even if the government holding falls below 51%.
Sources in the Department of Public Enterprises said the change in definition is being discussed with the Finance Ministry, and an announcement could be made by the new government.
“There is a thinking that PSU definition should be maintained with government holding of, say, 40% or 26% in case of certain non-strategic entities. This will not only give flexibility to PSU boards in decision-making but also allow more room for the Centre to raise additional revenue from disinvestment,” said a top PSE official aware of the proposed changes.
