PSEs emerge stronger after disinvestment: FinMin

The government today said that disinvestment in public sector enterprises (PSE) have helped these firms to become stronger and proceeds from it are being used for creating new national assets for the country.

"Public sector enterprises, which have gone through the process of disinvestment have emerged more visible and stronger," Disinvestment Secretary Sumit Bose said at an interactive session with chief executives of PSEs, organised by Standing Conference of Public Enterprises (Scope).

Scope is an apex body of central public sector firms.

He further said the disinvestment proceeds in the National Investment Fund (NIF) are being utilised in meeting the capital expenditure required because of adverse impact of global financial crisis.

Scope Director General U D Choubey said, "PSEs demonstrate high ethical values as they have system oriented corporate governance and regulations. There are large number of checks and balances together with mandatory provisions such as CAG, Board Audit Committees, which keep them away from unethical practices."

Aiming to raise Rs 40,000 crore through disinvestment this fiscal, the government has mopped-up over Rs 1,000 crore by divesting stake in Satluj Jal Vidyut Nigam, and around Rs 1,000 crore through Engineers India follow-on public offer.

Besides, the government is likely to sell its stake in many firms, including Coal India, ONGC, IOC, SAIL, MMTC and Hindustan Copper and Power Grid this fiscal.

Last fiscal, it had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.