More PSEs should be listed, says president

Out of 269 units, only 60 are listed in the stock exchanges at present

jasleen

Jasleen Kaur | December 13, 2013



Pitching for a level playing field and greater autonomy for public sector units, president Pranab Mukherjee said listing of PSEs will help them to improve their performance. "Much more needs to be done to provide a level playing field between the public and private sectors in terms of flexibility of operation and quicker decision-making. A measure that can help in this process is the listing of PSEs on stock exchanges," Mukherjee said while addressing the two-day Global PSE Summit in Delhi on Friday.

As of now out of around 260 units, only 60 are listed in the stock exchanges. Mukherjee said that the listing would allow millions of small and large shareholders to participate in their (state-run firms) ownership, which could stimulate the PSEs to better their performance.

In the area of corporate social responsibility, Mukherjee said that as custodians of social development, the public sector units would need to set an example for their private sector counterparts in the backdrop of the provisions laid down in the Companies Act, 2013.

Pointing out the challenges faced by the government-run companies like increasing their competitiveness to deal with market forces, Mukherjee said, “Management has to be of the highest professional level, enabling the attainment of global benchmarks in productivity and efficiency and meeting the multiple objectives expected of contemporary global enterprise".

He further said that the managerial and commercial autonomy has been devolved in the profit-making PSEs through the scheme of maharatnas, navratnas and miniratnas.

Heavy industry and public sector enterprises minister Praful Patel said that the presence of public sector has developed many parts of the country like Assam, Haldia and Bokaro and it is a wrong perception that they are not performing well. The minister informed that out of 269 PSEs, 66 units have been termed as sick. And of these 66 units, 43 have been given approval for revival package. He also said that 24 (formerly sick) units have made profits and 13 have been turned around. “Many PSEs are performing better than the private sector. They are being managed really well. We have to acknowledge the fact that valuation of PSEs in stock market is far less than that of the private sector.” He added that the perception that PSEs are not performing well needs to be corrected.

The Global Summit has been organised by the department of public sector enterprises (DPE) in collaboration with the confederation of Indian industry (CII). O P Rawat, secretary DPE and B Prasada Rao, chairman and managing director of Bharat Heavy Electricals Limited also addressed the inaugural session. 

 

Comments

 

Other News

‘World’s biggest festival of democracy’ begins

The much-awaited General Elections of 2024, billed as the world’s biggest festival of democracy, began on Friday with Phase 1 of polling in 102 Parliamentary Constituencies (the highest among all seven phases) in 21 States/ UTs and 92 Assembly Constituencies in the State Assembly Elections in Arunach

A sustainability warrior’s heartfelt stories of life’s fleeting moments

Fit In, Stand Out, Walk: Stories from a Pushed Away Hill By Shailini Sheth Amin Notion Press, Rs 399

What EU’s AI Act means for the world

The recent European Union (EU) policy on artificial intelligence (AI) will be a game-changer and likely to become the de-facto standard not only for the conduct of businesses but also for the way consumers think about AI tools. Governments across the globe have been grappling with the rapid rise of AI tool

Indian Railways celebrates 171 years of its pioneering journey

The Indian Railways is celebrating 171 glorious years of its existence. Going back in time, the first train in India (and Asia) ran between Mumbai and Thane on April 16, 1853. It was flagged off from Boribunder (where CSMT stands today). As the years passed, the Great Indian Peninsula Railway which ran the

Vasudhaiva Kutumbakam: How to connect businesses with people

7 Chakras of Management: Wisdom from Indic Scriptures By Ashutosh Garg Rupa Publications, 282 pages, Rs 595

ECI walks extra mile to reach out to elderly, PwD voters

In a path-breaking initiative, the Election Commission of India (ECI), for the first time in a Lok Sabha Election, has provided the facility of home voting for the elderly and Persons with Disabilities in the 2024 Lok Sabha elections. Voters above 85 years of age and Persons with Disabilities (PwDs) with 4

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter