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04-10-2012, 11:03 AM #1
Govt weighs listing of PSU subsidiaries
The Disinvestment Department (DoD) on Monday held inter-ministerial discussion on the possibility of listing profitable subsidiaries of public sector units (PSUs ), a move that would enhance financial resources of the state-owned companies and promote disinvestment programme.
"The meeting was for preliminary exchange of views and ideas. It was for understanding of the concept," a senior government official said.
It is understood that representatives of the concerned ministries including oil, power, coal and steel attended the meeting and gave their views on the proposed concept.
The listing of subsidiaries will help in raising resources for the PSUs, paying better dividends to the centre and promoting disinvestment by encouraging state-owned companies to buy back their equity from the government.
The government proposes to raise Rs 30,000 crore in the current fiscal from disinvestment. During 2011-12, the government raised only Rs 14,000 crore as against the target of Rs 40,000 crore.
Of the total 220 operational CPSEs, 158 units were profit-making as on March 2011.