Lok Sabha Question No. 2614 (UNSTARRED), answered on 2026-03-09
Subject: Disinvestment plan for Public Sector Enterprises
Ministry: FINANCE
Asked by: Shri Sanjay Uttamrao Deshmukh, Shri Anil Yeshwant Desai

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## LOK SABHA UNSTARRED QUESTION NO. 2614

TO BE ANSWERED ON MONDAY, MARCH 09,2026/PHALGUNA 18, 1947 (SAKA)

## Disinvestment Plan for Public Sector Enterprises

## 2614. SHRI SANJAY UTTAMRAO DESHMUKH SHRI ANIL YESHWANT DESAI

Will the Minister of Finance:

- (a) The details of the Government's disinvestment plan for the current financial year:
- (b) The reasons for selling Government equity in Public Sector Enterprises and inviting private entities to participate in these business operations:
- (c) The assessment of the Government regarding the success of the undertaking handed over to private parties during the last ten years:
- (d) Whether sufficient funds are available for the said purpose: and
- (e) If so, the details there of?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (b) : Government carries out disinvestment in Public Sector Enterprises (PSEs) through (i) Minority Stake Sale through various SEBI-approved methods such as Initial Public Offer (IPO), Offer for Sale (OFS), Buyback of shares etc and (ii) Strategic Disinvestment i.e. entire or  substantial  sale  of  Government  shareholding  to  a  strategic  buyer  along  with  transfer  of management control.

While minority stake sale increases public float of CPSEs and enable citizens /investors to benefit  from  the  value  created  by  these  companies  through  the  stock  exchanges,  strategic disinvestment/privatization  is  based  on  the  economic  principle  that  Government  should discontinue in sectors, where competitive markets have come of age and economic potential of such entities may be better discovered in the hands of strategic investor due to various factors such as infusion of capital, technological upgradation and efficient management practices.

Disinvestment is an ongoing process, and execution/completion of specific transactions hinges upon market conditions, domestic and global economic outlook, geopolitical factors, investor interest  and  administrative  feasibility.  Given  the  market-sensitive  nature  of  disinvestment transactions, drawing up timelines for disinvestment are not feasible.

- (c) to (e): The following CPSEs have been privatized in the last ten years through transparent, open and competitive bidding process:

|   S. No | Financial Year   | Name of the CPSE /Entity                                    | Name of Acquirer               |
|---------|------------------|-------------------------------------------------------------|--------------------------------|
|       1 | 2021-22          | Air India and its subsidiary AIXL and AISATS(JV)            | M/s Talace Pvt. Ltd.           |
|       2 | 2022-23          | Neelachal Ispat Nigam Limited (NINL)                        | TATA Steel Long Products Ltd.  |
|       3 | 2024-25          | Ferro Scrap Nigam Limited (FSNL), a subsidiary of MSTC Ltd. | M/s. Konoike Transport Co. Ltd |

The  Department  has  not  made  any  formal  assessment  of  operational,  technological  and managerial  efficacies  of  these  privatized  CPSEs.  However,  the  Economic  Survey,  2019-20 analyzed  the  gains  of  privatization  in  case  of  11  CPSEs  that  had  undergone  strategic disinvestment from 1999-2000 to 2003-04. The analysis shows that these privatized CPSEs on an average, perform better post privatization than their peers in terms of their net worth, net profit,  return on assets, return on equity, gross revenue, net profit margin, sales growth and gross profit per employee.

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