nd str and n rastr         t re    9.15
     to 26 per cent or below if necessary and in the            major features— ‘ideology’ behind the policy and
     ‘strategic’ PSEs (i.e., arms and ammunition;               the ‘policy’ itself. The ideology behind the policy
     atomic energy and related activities; and railways)        is:
     it will retain its majority holding.45 There was                 (i) Public ownership of PSUs to be promoted
     a major shift in the disinvestment policy from                       as they are wealth of nation;
     selling small lots of share in the profit-making                (ii) Government to hold minimum 51 per
     PSUs (i.e., token disinvestment) to the strategic                    cent shares in case of ‘minority stake sale’;
     sale with change in management control both in                       and
     profit and loss-making enterprises. The essence of
                                                                    (iii) Upto 50 per cent or more shares might be
     the strategic disinvestment was—
                                                                          sold off under ‘strategic disinvestment’.
           (i) The minimum shares to be divested will
                                                                      The current policy of disinvestment followed
                 be 51 per cent, and
                                                                by the government is as given below:
          (ii) the wholesale sale of shares will be done to
                                                                      (i) Minority stake sale (the policy of
                 a ‘strategic partner’ having international
                                                                          November 2009 continues):
                 class experience and expertise in the
                 sector.                                                       Listed PSUs to be taken first to
                                                                               comply to minimum 25 per cent
           This form of disinvestment commenced
     with the Modern Food Industries Ltd. (MFIL).
     The second PSUs was the BALCO which invited                               New PSUs to be listed which have
     every kind of criticism from the opposition                               earned net profit in three preceding
     political parties, the Government of Chattisgarh                          consecutive years;
     and experts, alike. The other PSUs were CMC                               ‘Follow-on’ public offers on case by
     Ltd, HTL, IBPL, VSNL, ITDC (13 hotels),                                   case basis once capital investment
     Hotel Corporation of India Ltd. (3 hotels),                               needed; and
     Paradeep Phosphate Ltd (PPL), HZL, IPCL,                                  DIPAM (Department of Investment
     MUL and Lagan Jute Manufacturing Company                                  and Public Asset Management)
     Ltd. (LJMC)—a total number of 13 public sector                            to identify PSUs and suggest
     enterprises, were part of the ‘strategic sale’ or                         disinvestment in consultation with
     ‘strategic disinvestment’ of the PSEs.46 The new                          respective ministries.
     government at the Centre did put this policy of                 (ii) Strategic Disinvestment i.e., selling 50
     strategic disinvestment on the hold practically and                  per cent or more shares of the PSUs
     came up with a new policy in place.                                  (announced in February 2016):
                                                                               To be done through consultation
     current Disinvestment Policy                                              among Ministries/Departments and
     India’s disinvestment policy®47 has evolved over                          NITI Aayog;
     time since it commenced in 1991. It has two                               NITI Aayog to identify PSUs and
                                                                               advice on its different aspects; and
       45.      o ce        ific io of e           overnment of
              India, 1999.                                                     CGD (Core Group of Secretaries
       46.    Publications Division, India 2003      ew elhi                   on Disinvestment) to consider the
                overnment of ndia,     .                                       recommendations of NITI Aayog
       47.    Ministry of Finance, Department of Investment and                to facilitate a decision by the CCEA
                u lic Asset anagement, overnment of ndia,                      (Cabinet Committee on Economic
                . elhi, arch       .