- 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.
- For 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).