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| Listed CPSEs to offload 10%, says Chidambaram |
| Press Trust of India / New Delhi Nov 05, 2009, 15:05 IST |
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The government today decided that all listed central public sector enterprises (CPSEs) will increase the public holding to 10 per cent and all unlisted profitable state-owned entities should go public.
"All profitable listed CPSEs should need the mandatory listing of 10 per cent public ownership," Home Minister P Chidambaram told reporters after the meeting of Cabinet Committee of Economic Affairs (CCEA) here.
The government has also decided that all unlisted CPSEs, which have made profit in the past 3 years and have a positive networth, should get listed on stock exchanges, he said, adding that CPSEs will enter the market at "appropriate" time.
The decision will have a bearing on mineral major NMDC and MMTC, as the public shareholding in these companies is 1.62 per cent and 0.67 per cent respectively.
Listed companies are required to divest a minimum of 10 per cent of the equity to the public, according to Sebi regulations.
The Minister further added the proceeds of the disinvestment will straight away meet the capital expenditure of the government's social sector programmes, without being routed through National Investment Fund (NIF).
In pursuance of its disinvestment programme, the government had offloaded its stake in Oil India and NHPC in the current fiscal. It has also unveiled plans to reduce its shareholding in NTPC, Sutluj Jal Vidyut Nigam and Rural Electrification Corporation.
During the current fiscal, the government raised Rs 2,013 crore by offloading stake in the hydro-power major NHPC and Rs 2,247 crore from stake sale in OIL.
The government is committed to offloading equity in public sector undertakings while retaining 51 per cent stake, according to the disinvestment policy of the UPA.
"The public sector undertakings are the wealth of the nation, and a part of this wealth should rest in the hands of people. While retaining at least 51 per cent government equity in our enterprises, I propose to encourage people's participation in our disinvestment programme," Finance Minister Pranab Mukherjee had said in his Budget speech in July.
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