Mar 6, 2000|
‘Golden share’ option for PSU disinvestment
The government is mulling over a move to divest 100% of its holding in non-core public sector units (PSUs) and retaining just one golden share.
The government has budgeted Rs 100 bn from disinvestment of holdings in public sector companies. The finance minister in his budget speech had stated that the government may consider exiting non-core PSUs.
The government’s disinvestment drive has come a cropper in recent years. For the current fiscal year the government has managed to raise a paltry Rs 14 bn to date as against the target of Rs 100 bn. The decision to retain a golden share is likely to be acceptable to the opponents of privatisation. The move will enable complete privatisation thus getting a better valuation for the government’s holdings.
Whether such a move will actually be incorporated is yet uncertain. However it is definitely a better and more acceptable way for the government to reduce its involvement in the industrial economy.
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