The Hindu Business Line : Unlock full potential, Chidambaram tells PSUs

`UNLOCK POTENTIAL': The Finance Minister, Mr P. Chidambaram, with the Minister for Heavy Industries, Mr Santosh Mohan Dev, during the Navratna Investiture Ceremony function in the Capital on Friday . - Ramesh Sharma

New Delhi June 22 The Union Finance Minister, Mr P. Chidambaram, on Friday told public sector enterprises (PSEs) to unlock the full potential of their human resources even as he suggested that more PSEs should go in for listing on stock exchanges to realise their true enterprise value.

"Today, successful companies value their enterprise by putting a value on their human resource. PSEs hide their value and one of the values they successfully hide is the quality of its human resources," Mr Chidambaram said in his address at a navratna investiture ceremony here.

Citing the example of Infosys, Mr Chidambaram said that Infosys not only values its computers, its knowledge, but also values its human beings. "It also puts a value on that (human resources)," he said.

The Finance Minister, however, admitted that a large measure of autonomy would have to be given to the PSEs, including an eventual autonomy to remunerate its employees, if they are to unlock their enterprise value.

Stating that these steps cannot be taken overnight, Mr Chidambaram said that the only way to unlock was to give PSEs more autonomy, make them accountable and remunerate their employees as they should be remunerated in any competitive environment.

Navratna status conferred

The Finance Minister conferred navratna status on three central PSEs (CPSEs) — Bharat Electronics Ltd, Hindustan Aeronautics Ltd and Power Finance Corporation Ltd.

A navratna status would enhance the financial and administrative powers of the CPSEs' boards.

With these three CPSEs getting navratna certificates, the number of CPSEs with navratna status has increased to 12.

Mr Chidambaram also released guidelines on corporate governance for CPSEs, which are only voluntary and not mandatory for these enterprises.

The Heavy Industries Minister, Mr Sontosh Mohan Dev, indicated that four more CPSEs — Nalco, NMDC, PowerGrid and REC are likely to get navratna status in the coming days.

In his address, Mr Chidambaram also said that PSEs would not lose their public sector character consequent to any listing of their shares.

"The ultimate unlocking of value for PSE is only by listing in a stock exchange. That doesn't make it any lesser a public enterprise or dilute the character of PSE. While retaining the character of PSE and meeting both the letter and spirit of definition of PSE, it is possible to unlock the value of PSE by listing in a stock exchange," he said.