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Several government owned companies have shareholding by the government of India at more than 75 per cent. These include the likes of Coal India, SAIL, NHPC, NMDC and SJVN.
Cutting the government holding in these companies would involve the government selling the shares of these companies to the public or institutional investors. This would also help the government rake in the much needed money to help the fiscal deficit.
Shares of government owned companies did not react much to the reports and were trading flat.
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