Cabinet’s in-principle nod for strategic sale of undertakings

New Delhi, Oct 27 (IANS) The Union Cabinet on Thursday gave its in-principle approval to a proposal mooted by the NITI Aayog for strategic sale in public sector undertakings (PSUs) including those that are making profits.

“The recommendations of the NITI Aayog with regard to both disinvestment and strategic sale came up for consideration. In principle, the cabinet has approved the recommendations with regard to some of the units,” Finance Minister Arun Jaitley told reporters here after the cabinet meeting.

Strategic sale involves reducing government shareholding in the company to below 50 per cent, transferring, thereby, management control.

“In principle, it has been approved. Specific cases would now come up after a detailed examination as to how it is to be done in each case and the details with regard to the units concerned will be furnished at that stage. This list does not include PSUs for closure,” Jaitley said.

“Some of these are important units, and therefore, since each unit would be considered in its own merit, the timing of that (sale) would be decided by the government accordingly,” he said.

On the valuation of the PSUs to be divested, he said there are settled valuation processes and a transparent one would be followed.