Finalise legal strategy for indirect control model for PSUs: Parl panel to DIPAM
New Delhi: The Parliamentary Standing Committee on Finance has asked the Department of Investment and Public Asset Management (DIPAM) to finalise a clear legal strategy—such as a ‘golden share’ or indirect control model—to safeguard strategic autonomy in public sector undertakings (PSUs) even if government shareholding drops below 51 per cent.
At present, the government must retain at least a 51 per cent stake to maintain PSU status. The panel noted that alternative mechanisms are being explored to ensure oversight while enabling disinvestment.
In its 33rd report on Demands for Grants (2026–27), the committee also recommended revamping the MoU framework into a high-performance tool that mandates succession planning and prevents excessive dividend extraction from weakening internal accruals. It stressed that CPSEs require strong internal resources to meet their annual capital expenditure target of around Rs 3 lakh crore for sustainable growth.
The panel, chaired by Bhartruhari Mahtab, urged the Finance Ministry to urgently fill 38 vacant posts in DIPAM through coordination with the Department of Personnel and Training and the Department of Expenditure.
It further called for a calibrated roadmap for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), backed by robust valuation safeguards and transparent oversight.
For the Department of Economic Affairs (DEA), the committee emphasised bridging revenue gaps at the Revised Estimates stage to ensure smooth functioning, staff morale and institutional efficiency.
It recommended close coordination with the Reserve Bank of India (RBI) to optimise borrowing and adopt innovative debt-reduction strategies, including shifting towards longer-maturity debt to reduce refinancing risks and free resources for capital investment.
The panel also urged early finalisation of the SME Growth Fund to accelerate funding for MSMEs and recommended a strategic shift in Viability Gap Funding towards new-age and social infrastructure projects.
To boost investor confidence, it highlighted the need to strengthen the PPP ecosystem by leveraging GIFT IFSC and operationalising an International Dispute Resolution Centre for legal certainty.
It also called for procedural reforms and non-monetary incentives for states, such as technical support and faster clearances, to ensure capital investments translate into technological advancement and long-term economic resilience.
For the Department of Expenditure, the committee recommended expanding the Public Financial Management System (PFMS) to the last mile for better fund tracking and strengthening outcome-based budgeting and internal audits to ensure efficient utilisation of public funds.
