25 PSU heads to meet Prime Minister today

Capital expenditure plans on the agenda

Heads of 25 major public sector undertakings (PSUs) will meet Prime Minister Manmohan Singh tomorrow to discuss capital expenditure plans, as well as issues hurting growth of their respective industries.

According to an official release, investment plans will be discussed during the meeting.

Among those who will meet the prime minister are the chairmen of Air India, Bharat Heavy Electricals, Coal India, GAIL, Indian Oil Corporation, NTPC, Power Grid Corporation, Steel Authority of India, Shipping Corporation of India and Indian Railways Finance Corporation.

This is the first such meeting between PSU heads and the PM, on the lines of the annual parleys heads of major private sector companies have with the PM on their concerns.

 

ON TALKS TABLE

• Autonomy of PSUs and disinvestment to be discussed with Prime Minister
• Meeting likely to be attended by chairmen of Air India, Bharat Heavy Electricals Limited, Coal India, GAIL, Indian Oil, NTPC, Powergrid Corp, Steel Authority of India, Shipping Corporation of India and Indian Railways Finance Corporation
• 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
• India has a total of 248 Central public sector enterprises, which together registered an 18-per cent growth in turnover at Rs 14,73,000 crore during 2010-11

Heavy Industries and Public Enterprises Minister Praful Patel told Business Standard: “Autonomy of PSUs and disinvestment will be discussed."

Patel said there were many PSUs with the capacity to go global but were constrained by over-regulation.

Patel also said some PSUs had complained their view was not sought when it came to divestment.

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

The government has set a target of raising Rs 30,000 crore through disinvestment this financial year.

However, no disinvestment has been carried out so far this year.

“If markets are stable, the government will be able to meet the target of Rs 30,000 crore,” said Patel.

India has 248 central public sector enterprises.

These companies together registered an 18 per cent growth in turnover at Rs 14,73,000 crore in FY11.

Of these, 45 listed companies together account for 22 per cent of the total market capitalisation of all the companies listed on the BSE.

Patel added he was willing to discuss with the prime minister that the limits on Maharatna and Navratna companies should be revised.