Economic Survey backs Temasek-like model proposed for divestment

Survey recommends transferring stake of listed govt firms to a corporate entity

Chief Economic Advisor Krishnamurthy Subramanian made a case for aggressively privatising central public sector enterprises (CPSEs) and suggested that the government transfer its stake in listed firms to a separate corporate entity.

Subramanian recommended the corporate entity be managed by an independent board with a mandate to divest the government stake in listed CPSEs over a period of time. “This will lend professionalism and autonomy to the disinvestment programme which, in turn, would improve the economic performance of the CPSEs,” the Economic Survey said.

The CEA said the government would do good to learn from the experience of Temasek Holdings, a firm