A day after Prime Minister Manmohan Singh called on more public sector undertakings (PSUs) to go public, unlisted PSUs came out strongly in favour of such a move. |
"Listing on stock exchanges will definitely improve the public image of PSUs and help them raise capital. The extra funds will help them expand," said M Pasricha, chairman and managing director, Oil India Ltd. Oil India, one of the country's top six oil companies, has already submitted a proposal for listing to the petroleum ministry. |
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Bharat Sanchar Nigam Ltd (BSNL), which is among India's biggest public sector undertakings, is keen on going public. BSNL Director (Finance) SD Saxena said this would help the firm become a global player. "Every company, whether in the public or private sector, needs autonomy and freedom. If the prime minister favours listing of PSUs, we are willing," he added. |
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There are 239 central public sector undertakings in the country. Of these, 44 are listed. |
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Some of the major unlisted PSUs include BSNL, Food Corporation of India, Air-India (which is merging with Indian), South Eastern Coalfields, National Fertilisers Ltd, National Mineral Development Corporation and Numaligarh Refinery Limited. In fact, a representative body of public sector units had recently written to the government proposing listing of more PSUs. |
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However, Prithvi Haldea, managing director, Prime Database, said the prime minister's statement was a mere wish. "If PSUs have to go for listings, they can do so in two ways. One is through divestment of the government stake and the other by raising fresh capital. The Left parties will not allow dilution of government stakes and it will be remarkable if the government manages to raise fresh capital," he said. |
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Haldea agrees that listing would help bring in more transparency and accountability in PSUs. "They will become more accountable to the public and the markets. Right now, they are accountable only to their ministers," he said. |
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