Considering if govt holding can go below 51% in certain CPSEs: FM

Finance Minister Nirmala Sitharaman Friday said the government is considering whether its holding can go below 51 per cent in some CPSEs on a case-to-case basis. Presenting the first Budget of the Modi government in its second term, Sitharaman said the government has decided to modify the present policy of retaining 51 per cent government stake in public sector undertakings (PSUs), including that of government institutions.

She further said that strategic disinvestment of select PSUs will remain a priority of the government and privatisation of Air India will be re-initiated. An expert committee will be set up to make recommendations on infrastructure finance, she added.

Sitharaman also said that the government proposes to reduce net owned fund requirements to Rs 1,000 crore for onshoring of international insurance companies. The government will bring exchange-traded funds (ETF) in line of equity-linked savings schemes of mutual funds to encourage retail investors.

In a major move, NPS Trust will be separated from PFRDA, she added.