Industry & Economy
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PSU
PSU sell-offs listed as key reform measure
Our Bureau
New Delhi, Feb 28
Bringing PSU disinvestment back on the radar, the Government has cited the completion of divestment of 5-10 per cent stake in previously identified profit-making non-Navratna PSUs as among the key reform options in the Economic Survey. It has also advised in favour of listing all unlisted public sector enterprises and selling a minimum of 10 per cent of equity to the public.
The Survey suggests the auctioning of all loss-incurring PSUs that cannot be revived and has mooted allowing negative bidding in the form of debt write-off for those in which net worth is zero.
There were 244 Central PSUs under the administrative control of various Ministries and Departments as on March 31, 2007. Of these, only around 44 are listed on the stock exchanges, while the bulk of the enterprises are still to tap the stock markets.
PSUs which were identified earlier for divestment but where stake sale could not go through on account of political opposition include National Mineral Development Corporation (NMDC) and Neyveli Lignite Corporation Ltd.
Bharat Sanchar Nigam Ltd, National Aviation Company of India Ltd (the holding company for both Air-India and Indian), Hindustan Aeronautics Ltd, Central Coalfields Ltd, Airports Authority of India, North Eastern Electric Power Corporation Ltd, Indian Railway Finance Corporation Ltd are among the profit-making, non-Navratna PSEs.
Of the total number of Central PSUs, there were of 59 loss-making enterprises, with the cumulative losses of these firms adding up to Rs 8,223 crore as on March 2007.
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