DMPQ: What do you mean by the term strategic disinvestment?

In strategic disinvestment the government sells major portion of its stake to a strategic buyer and also gives over the management control.Under it, the strategic Partner, may hold less percentage of shares than the government but the control of management will be wit him.or example, in a PSU, where the government holding 51%, and out of this, sale of 25% to the strategic partner while the government holding 26% share also is a case of strategic sale. Here, the remaining shares (49%) will be dispersed among the public.The Finance Ministry has empowered the NITI Ayog to advise the government on the strategic disinvestment of the CPSEs. The procedure for strategic sale will be prepared by Department of Investment and Public Asset Management (DIPAM)

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