Finance Secretary TV Somanathan signaled a shift, stating the government no longer sees disinvestment solely for budget balancing. This reflects confidence in revenue buoyancy and better expense control. The public sector’s revival, attracting shareholders with valuations and dividends, has tempered the urgency for disinvestment. A broader approach, evaluating PSU asset value, earning potential, and capacity buildup, has replaced a rigid disinvestment calendar. Delinking divestment from fiscal goals lets the government assess PSUs’ economic value and choose optimal stake sale timings.
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