Finance Minister Nirmala Sitharaman expressed the government’s willingness to consider disinvestment of equity stakes in prominent PSUs, such as the State Bank of India (SBI) and Oil and Natural Gas Corp (ONGC). In an exclusive interview with Network18, Sitharaman clarified that the government is open to holding a minority stake, even less than 50 percent, in crucial strategic public sector companies.
“Absolutely,” Sitharaman affirmed when asked about the possibility of holding 49 percent or less in PSUs, including SBI and ONGC. The current government stakes stand at 57.49 percent in SBI and 58.89 percent in ONGC.
“DIPAM, the department overseeing disinvestment, has gradually released government shares into the market to facilitate private ownership. This approach allows private entities to acquire and take control of these shares,” Sitharaman added.
Steps for Raising the Valuations of PSUs
Sitharaman emphasized the government’s commitment to measures that enhance the valuations of PSUs. Traditionally, government-owned companies have traded at discounts compared to their private counterparts. However, recent efforts have narrowed this gap.
“We are working to ensure that valuations are maintained,” she stated. “The public sector listed companies are experiencing increased vibrancy in the market. Share prices have risen, and dividends are more lucrative than before. Disinvestment is one aspect, but our focus is on bringing value to them and ensuring the market views them favorably.”
Sitharaman also highlighted the private sector’s entry into “core strategic” sectors, underscoring the government’s intention to have only a “minimum presence” in these areas.
Stay tuned for more updates on government disinvestments and financial strategies.
