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Focus on market divestment of CPSEs
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New Delhi
Feb 27
Reiterating the Government's commitment towards disinvestments of Central public sector enterprises (CPSEs), the Economic Survey tabled today in Parliament said that the current disinvestment policy is to list large profitable CPSEs on domestic stock exchanges.
Explaining the evolution of the Government's disinvestment policy over the last decade, the Survey said that till 1999-2000 disinvestment was primarily through sale of minority shares in small lots, after which the emphasis of disinvestments changed in favour of strategic sale.
Till March 2006 the total proceeds from disinvestments amounted to Rs 49,241.29 crore, the survey said.
In order to increase the efficiency level of CPSEs, the Government has already initiated several steps such as the provision of outside professionals in the form of part-time non-official directors, restricting the number of Government-nominated directors to one sixth of the actual strength of the subject to a maximum of two and incorporation of functional directors up to a limit of 50 per cent of the actual strength of the board.
Also, as part of committed operations, the system of signing annual MoUs between CPSEs and administrative Ministry concerned has gone up significantly since being introduced in 1987-88.
The number of CPSEs signing MoUs has gone up from four in 1987-88 to 112 in 2006-07, the Survey said.
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