Indirect Control Model for PSUs: Par Panel Asks DIPAM

New Delhi, Mar 17 (PTI) A parliamentary panel on Tuesday asked the Department of Investment and Public Asset Management to finalise a clear legal strategy, incorporating a 'golden share' or indirect control model, to safeguard strategic autonomy in PSUs where state shareholding may drop below 51 per cent.

Currently, the shareholding of the government cannot come below 51 per cent in any entity to maintain the public sector enterprise status.

The government is exploring the possibility of the 'golden share' concept for public sector undertakings (PSUs) to maintain strategic oversight while reducing stake below 51 per cent.

The Standing Committee on Finance, in its report, also suggested that the MoU framework must be evolved into a high-performance tool that mandates 'succession planning' and ensures that the push for dividend revenue does not starve CPSEs of the internal accruals necessary for their Rs 3 lakh crore annual capex targets, which are essential for long-term profitable growth.

To address these systemic challenges, the committee headed by senior BJP leader Bhartruhari Mahtab recommend that the Ministry of Finance prioritise the filling of the 38 vacant officer positions on an emergency basis through immediate coordination with the DoPT and the Department of Expenditure.

The panel urged the Department of Investment and Public Asset Management (DIPAM) to formulate a carefully calibrated roadmap for the rollout of InvITs and REITs, supported by robust valuation safeguards and a transparent oversight mechanism.

The 33rd report, dealing with with 'Demands for Grants (2026-27)' of the Ministry of Finance (Departments of Economic Affairs (DEA), Expenditure, Public Enterprises and Investment and Public Asset Management), also recommended that that the DEA prioritise bridging the revenue gap at the Revised Estimates (RE) stage to ensure administrative stability and effective governance.

"Addressing this shortfall is critical not only to maintain uninterrupted functioning of essential services but also to uphold staff morale and institutional efficiency. A timely recalibration of revenue allocations would enable the Department to meet both operational and strategic objectives, ensuring that vital programmes and commitments are executed without disruption," it said.

The committee have recommended that the DEA work closely with the RBI to optimise the borrowing calendar and explore innovative debt-reduction strategies to lower the interest burden over the medium term.

The panel further recommended enhancing the 'Debt Management Strategy' to shift towards longer-maturity profiles, thereby reducing refinancing risks and freeing up revenue for productive capital investments.

Asking the DEA to immediately finalise the structural parameters of the SME Growth Fund to ensure an accelerated funding cycle, the report said it will help fulfil the immediate needs of the MSME sector.

The committee have further emphasised the need for a strategic shift in Viability Gap Funding (VGF) to prioritise new-age and social infrastructure, ensuring financial support is actively directed toward sustainable projects rather than being purely demand-driven, it said.

To restore investor confidence, the government must strengthen the PPP ecosystem by leveraging GIFT IFSC as a primary hub for global capital and operationalising the International Dispute Resolution Centre to provide legal certainty, it added.

The committee have also recommended intensified procedural debottlenecking and the active incentivisation of states through nonmonetary concessions, such as technical support and streamlined clearances, to ensure that massive capital investments translate into tangible improvements in domestic technological capability and long-term economic resilience.

With regard to the Department of Expenditure, the panel recommended that the department aggressively expand the reach of the Public Financial Management System (PFMS) to the 'last mile', ensuring seamless integration with state-level treasuries to eliminate time lags in fund utilisation reporting.

To move beyond mere financial outlays, the committee have recommended that the Department of Expenditure strengthen its 'Outcome-based Budgeting' framework and enhance the capacity of internal audit wings across all ministries to ensure that every rupee spent translates into measurable developmental outcomes.