PSU heads to meet PM tomorrow

They will be discussing their capex plans and issues hurting growth

Heads of 25 major Public Sector Undertakings (PSUs) of the Indian economy are scheduled to meet Prime Minister Manmohan Singh on Tuesday to discuss their capital expenditure plans and issues hurting growth.

This would be the first such meeting of PSU heads with the PM along the lines of an ongoing trend where heads of major private sector companies meet the PM annually to take up their concerns.

"Autonomy of PSUs and disinvestment will be discussed with the prime minister," Heavy Industries and Public Enterprises minister Praful Patel told Business Standard, adding that there are many PSUs which have the capacity to go global, but over-regulation sometimes does not allow that to happen.

Patel also said that some PSUs have also brought to his notice that their voice is sometimes not heard in the matter of divesting their stake.

"They are in favour of disinvestment. But their point of view does not get much of attention," Patel said.

Patel is also willing to discuss with the PM that the limits to get Maharatna and Navratna companies should be revised. 

According to an official release, future investment plans would also come up for discussion.

The government has set a target of raising Rs 30,000 crore through disinvestment this financial year. However, disinvestment in not a single company has been carried out so far.

"If the markets are stable, the government will be able to able the target of Rs 30,000 crore," Patel added.

Tomorrow's meeting is likely to be attended by Chairmen of Air India Ltd, Bharat Heavy Electricals Ltd (BHEL), Coal India Ltd (CIL), GAIL, Indian Oil Corp (IOC), NTPC Ltd, Powergrid Corp, Steel Authority of India Ltd (SAIL), Shipping Corporation of India Ltd and Indian Railways Finance Corporation Ltd (IRFC).

India has a total of 248 Central Public Sector Enterprises (CPSEs). These companies together registered an 18% growth in turnover at Rs 14,73,000 crore in financial year 2010-11. Of these, 45 listed companies together account for 22% -- Rs 15,6000 crore -- of the total market capitalization of all the companies listed at Bombay Stock Exchange (BSE).