Centre's hold on PSUs will remain

Finance Minister Pranab Mukherjee said “the public sector undertakings are the wealth of the nation, and part of this wealth should rest in the hands of the people. While retaining at least 51 per cent government equity in our enterprises, I propose to encourage people’s participation in out disinvestment programme.”

He, however, added that the PSUs such as banks and insurance companies would remain in the public sector and “will be given all support, including capital infusion to grow and remain competitive.”

Terming the financial sector as the “life blood of any economy,” he said the government’s approach to the arena has been “to ensure robust oversight and regulatuion, while expanding financial access and deepening markets.” 

He further said that this approach has helped Indian banking and financial sector remain “relatively unaffected: in the turbulence in the world financial markets.

At the same time, the threshold for public or non- promoter shareholding in all listed companies, including those from public and private sector, would be raised, he said. “I propose to raise, in a phased manner, the threshold for non-promoter public shareholding for all listed companies,” he noted.

Besides, provision has been made for transfer of divestment amount, as also estimated disinvestment proceeds for current fiscal, to the National Investment Fund (NIF).