NTPC, Steel Authority of India Ltd and Power Grid Corp are some of the companies where the government could shed their majority stake
The government is planning to cut its stake in central public sector enterprises (CPSEs) to 49 percent in three years, The Economic Times reports.
The proposal excludes state-run companies in sectors such as defence and oil.
Such a move will benefit state-run companies as their autonomy will increase. The government, too, could benefit as divesting could raise the stake of their remaining holding.
"The plan is to reduce government's stake in most CPSEs to at least 49% over the next three years besides ensuring that the boards of these firms are more professionally managed,"a senior government official told the paper.
"We must exit all companies except the ones that have some strategic importance," the source added.
NITI Aayog is identifying the companies for divestment.
The government owns 51 percent or more in over 250 CPSEs, the report said.