/images/ppid_59c68470-image-176967260294886784.webp)
/images/ppid_a911dc6a-image-176967002928557621.webp)
/images/ppid_59c68470-image-176967003479682018.webp)
/images/ppid_a911dc6a-image-176967003412811342.webp)
What is the story about?
The Economic Survey 2026, tabled in Parliament by Finance Minister Nirmala Sitharaman on Thursday, January 29, 2026, talks about the fact that the government could consider amending the definition of "Government Company" under the Companies Act.
"Currently, in about 30% of listed CPSEs, Government shareholding is already below 60%, limiting further disinvestment through OFS, as it is stipulated in the Companies Act that a ‘government company’ must have at least 51% of its stake held by the central or state government. Since effective control requires only about a 26% stake, the Government could consider amending the definition of “Government Company” under the Companies Act, limited to listed entities, to allow them to remain as government companies with a minimum of 26% ownership, thereby retaining special resolution rights, while enabling the government to monetise its stake," the survey document stated.
The Economic Survey also states that receipts from equity monetization can be strengthened by selectively reducing government stake in PSUs beyond the minimum shareholding norms, which requires public shareholders to have at least 25% of the overall shareholding.
The Government could continue the phased Offer For Sale (OFS) below 51% and even towards full exit if the objective is eventual privatization, without changing the legal definition of a "government company," the survey document states.
"This would enable CPSEs to function post-disinvestment as professionally managed entities with dispersed ownership, clear governance standards, and transparent succession frameworks," the document stated further.
A portion of the disinvestment receipts could also be earmarked for strategic investments in emerging technology and innovation-driven companies through professionally managed platforms such as the National Investment and Infrastructure Fund (NIIF), thereby recycling public capital towards the future growth sectors, as per the survey.
"Currently, in about 30% of listed CPSEs, Government shareholding is already below 60%, limiting further disinvestment through OFS, as it is stipulated in the Companies Act that a ‘government company’ must have at least 51% of its stake held by the central or state government. Since effective control requires only about a 26% stake, the Government could consider amending the definition of “Government Company” under the Companies Act, limited to listed entities, to allow them to remain as government companies with a minimum of 26% ownership, thereby retaining special resolution rights, while enabling the government to monetise its stake," the survey document stated.
The Economic Survey also states that receipts from equity monetization can be strengthened by selectively reducing government stake in PSUs beyond the minimum shareholding norms, which requires public shareholders to have at least 25% of the overall shareholding.
The Government could continue the phased Offer For Sale (OFS) below 51% and even towards full exit if the objective is eventual privatization, without changing the legal definition of a "government company," the survey document states.
"This would enable CPSEs to function post-disinvestment as professionally managed entities with dispersed ownership, clear governance standards, and transparent succession frameworks," the document stated further.
A portion of the disinvestment receipts could also be earmarked for strategic investments in emerging technology and innovation-driven companies through professionally managed platforms such as the National Investment and Infrastructure Fund (NIIF), thereby recycling public capital towards the future growth sectors, as per the survey.
/images/ppid_a911dc6a-image-176967182936259922.webp)
/images/ppid_59c68470-image-176967010782760560.webp)
/images/ppid_59c68470-image-17696701401993464.webp)
/images/ppid_59c68470-image-176967010817898213.webp)