From The Hindu, April 10, 1975: Many private firms are now “Govt. companies”

New Delhi, April 9: Mr. T.A. Pai, Minister of Industry, said to-day that many private companies had become “Government companies” by definition because of considerable investments by public financial institutions, and the Government was considering a new pattern of management for these companies to ensure the safety of investments and assured fair returns. “Not only our money but the money of small shareholders” was involved, he noted in reply to a question from Mr. P.R. Shenoy in the Lok Sabha. Mr. Shenoy asked whether to implement the “national sector” concept the Government would take over 51% of the shares in every joint sector unit controlled by monopolists. Mr. Pai said that in terms of the definition in the Companies Act, if 51% of the capital was owned by the Central Government, the State Government and Corporations owned or controlled by the Government, the company became a “Government Company.” Under the definition, many of the private companies had already become “Government companies.” The question was being studied as to “what extent our own investments” were involved in those companies, he said. Replying to Mr. V.P. Sathe, the Minister explained how the concept of private sector had undergone considerable change in the last 25 years. Since the public financial institutions had been financing the private units after the nationalisation of Life and General Insurance, most of the holdings now belonged to public financial institutions.