The government is taking steps for reducing it’s stake in PSEs on one hand and on the other hand it wants to keep those PSEs as PSU. Under the present definition central public sector enterprise are those companies in which the holding of central government or other CPSEs is 51% or more. The department of public Enterprise is in discussion with the finance ministry in this regard. If this policy will be implemented than the PSU definition could be mainatained with government holding of 26% or 40% share in non-stratgic entities. This would give more flexibility to the units in decision making and allow more rooms for the central government in raising additional revenue from disinvestment. It will also allow the government to buy back or sale shares according to market scenario.
