The finance ministry informed the Parliament that profit or loss of a state-run company is not among the relevant criteria for its privatisation or disinvestment policy but its based on the economic principle that the government should discontinue in sectors where competitive markets have come of age. The strategic disinvestment or privatisation is carried out through an “open, transparent and competitive” bidding process, it said
Synopsis
The official said the incentives would be finalised soon after the passage of the budget by Parliament. Finance minister Nirmala Sitharaman had said in her budget speech the Centre would incentivise disinvestment by states.
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NEW DELHI: The Centre could offer funds equivalent to disinvestment receipts raised by states to incentivise them to pursue stake sales in state-owned enterprises.
“We are working out the incentives… We could match up the disinvestment receipts raised by them,” a senior government official told ET.
The official said the incentives would be finalised soon after the passage of the budget by Parliament. Finance minister Nirmala Sitharaman had said in her budget speech the Centre would incentivise disinvestment by states.