New Delhi: Several of ‘maharatna’ and ‘navratna’ companies, including ONGC, IOC, GAIL and NTPC, could soon become independent board-run entities outside the scrutiny of CAG and CVC if the government implements a proposal to take out the PSU tag from some of the entities after its shareholding falls below the threshold 51 per cent mark.
Government sources said that Finance Ministry is planning to approach NITI Aayog to prepare yet another list of PSUs where their holding could be brought down to below 51 per cent and also point out which of these could shed the PSU tag and become independently board-run private companies.
For a company to remain a government-controlled public sector undertaking (PSU), either the Centre or the state government or both together should hold more than 51 per cent stake in it. The Budget proposed that 51 per cent stake could include direct and indirect shareholding of the government through other state-run companies and financial institutions.
“As per the definition of a government company, the Central Government and the State Government together have to have 51 per cent equity. If that comes down, then it does not have the character of the government company. So when this decision is taken, we will also be consciously deciding whether that particular company needs to be retained with the tag of the government company,” Finance Secretary Subhash Chandra Garg said when asked about the government’s plan on privatization. (IANS)