economic survey
Finance Minister Nirmala Sitharaman presented the Economic Survey in Parliament on Thursday. It has been told in the Economic Survey 2026 that the government may consider changing the definition of government company under the Companies Act.
The survey document states that at present the government’s stake in about 30% of the listed CPSEs is already less than 60%. In such a situation, the scope for selling further stake through Offer for Sale is limited, because according to the Companies Act, for a company to be called a government company, the Central or State Government must have at least 51% stake, whereas only about 26% stake is considered sufficient to maintain control over a company.
definition will change
For this reason, the government may consider changing the definition of government company under the Companies Act. This change will be limited to listed companies only, so that the government can maintain them as government companies even with a minimum 26% stake. This will also retain the special rights of the government and will also help in raising money by selling its stake.
The Economic Survey also says that going beyond the minimum stake norms set in PSUs, the income from share sale can be increased by reducing government stake in some selected companies. For this, public investors will be required to hold at least 25% shares.
This will also be an option
The survey document said that if the ultimate goal is privatization, then the government can continue the OFS in the prescribed manner with a view to reducing the stake to less than 51% and even complete exit without changing the legal definition of a government company. This process will enable CPSEs to function as professionally run entities post disinvestment. There will be divided ownership of shares, clear and strong administrative rules and a clear system for change of leadership.
According to the survey, a part of the disinvestment proceeds could be used to invest in new technology and innovation companies through professionally managed platforms like the National Investment and Infrastructure Fund, so that public money can be reinvested in future growth areas.
Also read- Economic Survey 2026: From Lakhpati Didi to G-Ram G, the Economic Survey told how the rural economy is developing.