Steering Public Sector Reforms: Golden Share Strategy Proposed

A parliamentary panel has directed the Department of Investment and Public Asset Management to draft a comprehensive legal framework, incorporating a 'golden share' model to safeguard government control in strategic public sector units (PSUs). The move comes as the government explores maintaining oversight while potentially reducing its stake below 51%.

The panel, led by senior BJP leader Bhartruhari Mahtab, also urged the Ministry of Finance to fill 38 vacant officer positions swiftly. It emphasized the need for a clear roadmap for InvITs and REITs, supported by strong valuation safeguards and transparent oversight, alongside optimizing borrowing strategies with the RBI.

The committee stressed a strategic shift in Viability Gap Funding priorities and enhancing the Public Financial Management System's reach. It outlined the need for outcome-based budgeting and recommended boosting internal audit wings to ensure every penny translates into developmental gains.