Disinvestment Options

Disinvestment Options
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  • To raise resources, the government can park most of its holdings with state-owned financial institutions
  • Merge a PSU where GOI has over 51 per cent stake into one which has below 51 per cent (like Maruti)
  • IPOs are a good way to raise capital through markets and then use it to build infrastructure
  • De-facto privatisation by stopping budgetary support, freeing the managements of political pressures and setting up a board is another way
  • Offer a package deal to those investing in profit-making PSUs to invest in sick PSUs as well
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