The Cabinet headed by Prime Minister Narendra Modi on Wednesday delegated powers to a select group of ministers that include Finance Minister Arun Jaitley to decide on modalities of stake sale in PSUs.
Once the Cabinet approves disinvestment in a public sector undertaking, the group that includes the Finance Minister, Road Transport Minister Nitin Gadkari and the concerned administrative minister, will take over decision making on a range of issues - from date of stake sale, price band and tranches.
“The CCEA has given its approval to Alternative Mechanism, who would decide on the quantum of disinvestment in a particular Central Public Sector Undertaking (CPSE) on a case by case basis subject to government retaining 51 percent equity and management control,” an official statement said.
This is in addition to the present functions performed by ‘Alternative Mechanism’ as has been approved by CCEA in August, 2014, said the statement issued after the Cabinet meeting.