Govt to list all profit making PSUs in 22 weeks
Posted on: 21/Feb/2017 10:00:33 AM
It is expected that for the investment offerings in the PSUs (Public Sector Undertakings), the central government will grant approval in 22 weeks.
It was announced during the Budget 2017 presentation that shares of profit-earning Public Sector Undertakings will be sold for additional financial revenue.
Accordingly, it is expected that the DIPAM (The Department of Investment and Public Assets Management) has released the rules and regulations for investment in Public Sector Undertakings.
As per this, the 25 percent owned by the central government in the Public Sector Undertakings that have been having large asset value, free of debts, and continuously earning profits will be released for public investment will be listed in the stock market.
It has been recommended that a special ministers committee headed by DIPAM Secretary will be formed for giving suggestions and advice every time the shares are released.
Subsequently, once the approval is obtained from the relevant central ministers, the central government will permit investment in PSUs in 22 weeks.
As per the financial year 2014-15 data, 157 organisations owned by the central government are functioning with profits. Out of this, only 45 companies have been listed in the stock market.
High profit earning organisations such as the Airppppport Authority of India, National Savings Godown, ONGC Videsh, and others are yet to be listed in the stock market.
As the list is made inclusive of all small and large companies, it will facilitate the public to study their performance and also, there will be good transparency.This will spur the companies to jump in the competition to do even better according to the Secretary of DIPAM Mr. Neeraj Gupta.
In this scenario, it is expected that about 50 Public Sector Undertakings may be listed on the stock exchange.
