Sign In
Learn bits
Economy
Mahesh

19/05/22 08:31 AM IST

Cabinet empowers Board of Directors of the holding, parent PSEs to allow disinvestment

In News 
  • The Union Cabinet approved a proposal for empowering the Board of Directors of the Holding / Parent Public Sector Enterprises to recommend and undertake the process for Disinvestment (both strategic disinvestment and minority stake sale) or closure of any of their subsidiaries/units/stake in JVs.
Other Proposals 
  • The Cabinet has also empowered Alternative Mechanism to accord ‘in principle’ approval for disinvestment (both strategic disinvestment and minority take sale) / closure of subsidiaries/units/sale of stakes in JVs of Holding / Parent PSEs [except the disinvestment (minority stake sale) of Maharatna PSEs which was delegated to them and review the process of disinvestment/closure by Parent / Holding PSEs.
Significance 
  • The aim is to expedite the decision-making process and cut wasteful expenditure by the PSEs.
  • Presently, the Board of Directors of Holding or Parent PSEs have been delegated certain powers under the Maharatna, Navratna and Miniratna categories to make equity investments to establish financial joint ventures and wholly-owned subsidiaries and undertake mergers or acquisitions subject to certain ceilings of net worth.
  • The proposal intends to reform the functioning of PSEs, by allowing greater autonomy to the Board of Directors of the Holding PSEs for taking decisions.
Source-PIB 

More Related Current Affairs View All

07 Aug

What is the potential of biochar?

'With the Indian carbon market set to be launched in 2026, CO2 removal technologies such as biochar are expected to play a crucial role. ' Biochar is a type of charcoal rich in

Read More

07 Aug

Carriage of Goods by Sea Bill, 2025

'The Parliament has passed the Carriage of Goods by Sea Bill, 2025, with the Rajya Sabha approving it recently. ' The Bill seeks to replace the Indian Carriage of Goods by Sea A

Read More

07 Aug

Telangana’s Kaleshwaram project

'The Kaleshwaram Lift Irrigation Project (KLIP) in Telangana is under scrutiny after the National Dam Safety Authority (NDSA) reported significant structural damage and design flaw

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps