Economic Survey Suggests Redefining 'Government Company' for Stake Sales

• The Economic Survey 2026, presented by Finance Minister Nirmala Sitharaman, proposes redefining 'Government Company' under the Companies Act.
• The current definition requires 51% government stake, but the survey suggests 26% ownership could suffice for effective control in listed entities.
• Amending the definition would allow the government to monetize stakes while retaining special resolution rights.
• Alternatively, phased Offer For Sale (OFS) below 51% could lead to eventual privatization without changing the legal definition.
• Disinvestment receipts could be used for strategic investments in emerging technologies via platforms like NIIF, recycling public capital for future growth.

Why It Matters: Redefining 'Government Company' or phased OFS could boost disinvestment and fund future growth sectors.