The government may opt for a golden share in Power Finance Corp. (PFC) to ensure it remains a public-sector enterprise after absorbing Rural Electrification Corp. (REC), said officials with knowledge of the matter.
The government holding in the merged entity is expected to drop below the halfway mark, possibly to 45 per cent, once the process is completed sometime in the current fiscal. It currently holds 59.05 per cent of PFC.
The golden share concept was used in the UK when it privatised state-run companies, allowing the government to veto proposals and other privileges. Read More