To fast-track strategic sale of central public sector enterprises, the Cabinet allowed alternative mechanism to decide on the timing, price and quantum of shares of a state-run company to be put on the block for outright sale.
“The Cabinet Committee on Economic Affairs has approved delegation of the following alternative mechanism in all the cases of strategic disinvestment of central public sector enterprises where CCEA has given ‘in principle' approval for strategic disinvestment,” an official statement said.
The alternative mechanism on strategic disinvestment consists of the Finance Minister, Minister for Road Transport and Highways and minister representing respective administrative department, to decide on the matters relating to terms and conditions of the sale.
The CCEA, headed by Prime Minister Narendra Modi, decided to allow the alternative mechanism to decide on the quantum of shares to be transacted, mode of sale and final pricing of the transaction or lay down the guidelines for such pricing, and the selection of strategic buyer, terms and conditions of sale.
The alternative mechanism will also decide on the proposals of the core group of secretaries on disinvestment with regard to the timing, price, the terms and conditions of sale and any other related issue to the transaction.
“This will facilitate quick decision-making and obviate the need for multiple instances of approval by the CCEA for the same CPSE,” the statement said.
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