Planning for non-core asset sale, govt dividend now mandatory for PSUs

Listed public sector firms will have to maintain their m-cap at a certain level

Government-owned entities would now be mandatorily required to outline a plan for non-core asset monetisation, payment of assured sum as dividend to the government and steps taken to increase market capitalisation of listed public sector undertakings (PSUs).
 
These conditions have now been included in the memorandum of understandings (MoUs) that public sector enterprises sign with the department of public enterprises (DPE) every year.
 
This is used to set annual targets based on which their performance is reviewed. MoUs signed between the government and PSUs have certain other targets like profit after tax (PAT), production and capital expenditure (capex),