The Cabinet Committee on Economic Affairs on Thursday gave an in-principle approval for listing of unlisted profitable public sector companies with a net worth of more than Rs 200 crore (Rs 2 billion).
At a meeting in New Delhi, the CCEA also approved the sale of government's minority shareholding in profitable PSUs in conjunction with a public issue of fresh equity by the PSE concerned or independently by the government.
"In both the situations, a condition has been set that in no case government equity in these companies should fall below 51 per cent and management control pass from its hands," Finance Minister P Chidambaram said after the meeting.
"The unlisted companies will be listed through an initial public offering either in conjunction with a fresh equity issue by the company or independently by the government on a case to case basis," he said.
Each listing or divestment case will be prepared in consultation with the concerned administrative ministry.
Firm proposals will again be put up before the CCEA for approval following which a Group of Ministers will take a final decision on price the band and final price, Chidambaram said.
Priority will be given to those PSUs, which autonomously intend to approach the capital market for issue of fresh equity, he added.
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