If a private company takes over a PSU, does it get benefit for past losses?

That had been a grey area for some time now, but the Finance Ministry has now clarified on this point. In fact, with a view to facilitating strategic disinvestment, finance ministry decided to permit private sector companies taking over PSUs to set off losses of previous years for the purpose of income tax. This would ensure reduction in their tax burden and offer an additional incentive for them. This is subject to holding 51% in the PSU.