Economic Survey 2026: The Economic Survey 2026, tabled in Parliament today by Union Finance Minister Nirmala Sitharaman, suggested that the government may consider amending the definition of a "Government Company" under the Companies Act to boost disinvestment via Offer for Sale (OFS).
Currently, the Companies Act defines a government company as one with at least 51 per cent of its stake held by the central or state government.
The Economic Survey 2026 observed that since only 26 per cent stake is required for effective control, the government could consider amending the definition of a “Government Company” under the Companies Act, limited to listed entities.
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According to the survey, this would allow entities to maintain their 'Government Company' status with a minimum 26 per cent stake, retaining special resolution rights while enabling the government to monetise its holdings.
Alternatively, the Economic Survey suggested that if the goal is eventual privatisation, the government could continue phased stakes below 51 per cent and even move toward full exit without altering the legal definition of a government company.
This transition would enable Central Public Sector Enterprises (CPSE) to operate as post-disinvestment, professionally managed entities with dispersed ownership, clear governance standards, and transparent succession frameworks, News18 reported.
"A portion of disinvestment receipts could also 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), thereby recycling public capital toward future growth sectors. This will also ensure a steady stream of disinvestment receipts into the future," the survey added.