Friday, November 6, 2009

Listed CPSEs to offload 10 pct: Chidambaram

[As part of imperialist plunder, government has decided to sale 10% shares of all public sector enterprises. However, ridiculously, finance minister said that it actually increased people's participation. We would remind finance minister that more than 70% of Indian population live a life that cannot sustain minimum calorie intake. They are not going to buy the share, even they cannot think of it.  These people, most likely  are not considered as citizen by finance minister. Red Barricade]

The government on Thursday decided that all listed central public sector enterprises (CPSEs) would 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 here.

The government has also decided that all unlisted CPSEs which have made profit in the past 3 years and have a positive net worth should get listed on stock exchanges, he said, adding that CPSEs would 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.

As per SEBI regulation, listed companies are required to divest a minimum of 10 per cent of the equity to the public.

The Minister further said the proceeds of the disinvestment would straight away go to meeting 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 Ltd 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.

As per the disinvestment policy of the UPA, the government is committed to offloading equity in public sector undertakings while retaining 51 per cent stake.

"The public sector undertakings are the wealth of the nation, and 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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