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Strategic disinvestment in central public sector enterprises (CPSEs) has progressed in a calibrated manner over recent years, the Economic Survey 2025-26 presented by Union Finance Minister Nirmala Sitharaman in Parliament said on Thursday.

Since 2016, in-principle approval has been granted for strategic disinvestment in 36 CPSEs, of which 13 transactions have been completed, while the remaining are at various stages of implementation.

During the current financial year, approvals were also accorded for stake dilution or exit from select joint ventures, including NTPC’s divestment from Utility Powertech Limited.

“These actions have been complemented by governance reforms that empower CPSE boards to undertake closure, merger, or disinvestment of subsidiaries,” the survey said, highlighting steps taken to strengthen operational efficiency and corporate governance in public sector enterprises.

The Economic Survey noted that receipts from equity monetisation can be further strengthened by selectively reducing government equity in certain CPSEs beyond the minimum public shareholding norms.

Currently, in about 30 per cent of listed CPSEs, government shareholding is already below 60 per cent, limiting the scope for further disinvestment through offer-for-sale (OFS) as per existing Companies Act provisions, which require a ‘government company’ to hold at least 51 per cent of the stake.

The survey observed that since effective control of a company requires only about a 26 per cent stake, the government could consider amending the definition of “Government Company” under the Companies Act for listed entities. This would allow these entities to retain special resolution rights while enabling the government to monetise its stake selectively.

Alternatively, the survey suggested, if the objective is eventual privatisation, phased OFS could continue below 51 per cent or even towards full exit, without changing the legal definition of a government company.

Such measures, the survey said, would allow CPSEs to function post-disinvestment as professionally managed entities with dispersed ownership, clear governance standards, and transparent succession frameworks.

The Economic Survey also recommended that a portion of disinvestment receipts could be earmarked for strategic investments in emerging technology and innovation-driven companies through professionally managed platforms such as the National Investment and Infrastructure Fund (NIIF). This approach would recycle public capital toward future growth sectors while ensuring a steady stream of disinvestment receipts in the long term.

The survey, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the Chief Economic Adviser, provides a detailed assessment of the state of the economy for 2025-26 (April-March) and an outlook for the next fiscal. It covers a range of indicators, policy measures, and reforms undertaken by the government to strengthen economic growth and governance.

On Thursday, both the Lok Sabha and Rajya Sabha were adjourned and are scheduled to meet again on February 1 at 11:00 am, ahead of the Union Budget presentation, which will take place on the same day. This year, the Budget presentation falls on a weekend.

During the proceedings, the House took up Question Hour, followed by the laying of papers on the Table by members of the Union Council of Ministers. Finance Minister Nirmala Sitharaman laid papers about the Ministry of Finance, while Murlidhar Mohol presented papers related to the Ministry of Civil Aviation.

The House also witnessed the formal laying of eight Bills passed by both Houses of Parliament during the Sixth Session of the 18th Lok Sabha and receiving the President's assent. In addition, the 13th Report of the Business Advisory Committee was presented by Kiren Rijiju and Kodikunnil Suresh, as listed in the agenda.