The government of India unveiled its disinvestment policy regarding Public Sector Units (PSUs). According to the policy cleared by the Cabinet Committee on Economic Affairs, all listed PSUs are required to plan further stake sales to ensure that the minimum public holding in these firms reaches 10%. All unlisted PSUs with a positive net worth, no accumulated losses and net profits in the preceding three years should be listed.

It also holds the promise of improving PSUs’ governance standards while raising resources to contain the Centre’s huge fiscal deficit. The stake sale proceeds, which could touch Rs. 25,000 crore annually, will be used to fund the capital expenditure of social sector projects.