Divestment Commission on Tuesday recommended the sale of 49 per cent government equity in Power Finance Corporation to a minority partner.
In its latest report, the Commission said the development finance organisation should continue to remain within the government fold for some more time while inducting a minority partner with 49 per cent stake along with a say in the management of the company.
The report said PFC should engage only in financing of power sector assets on commercial terms based on techno-economic considerations.
Spreading of risk beyond the power sector and taking state government guarantees should not be encouraged, it said.
PFC should be discouraged from entering into borrowing arrangements, which recognise government support for its operations, the Commission said.