‘State-owned enterprises are ready to face new challenges’
Keen on unlocking value of public sector enterprises (PSEs), Prime Minister Manmohan Singh today said the government was encouraging them to raise resources by listing on the stock exchanges.
“The government is encouraging the listing of PSEs, as this unlocks the true value of a company, improves its corporate governance standards and also helps it in raising resources for funding future expansion plans,” he said at an award function for the PSEs here.
Singh said several PSEs have got their shares listed on the markets in the last two years and many more want to do so.
“This shows they are not shying away from market scrutiny and are ready to face new challenges,” he said at a function organised by the Standing Conference of Public Sector Enterprises (SCOPE).
Since the UPA came to office for the second term this May, two public sector companies — NHPC and Oil India — have listed on the bourses. More are in the pipeline. Forty-three PSEs account for 24 per cent of the Bombay Stock Exchange’s market cap of Rs 58 lakh crore.
Of the top 10 listed companies on the BSE, five belong to the public sector. “More and more PSEs are entering capital market and are striving to become global players,” he said.
Lauding the role of these units in the economy, he said India weathered the global slowdown better than most other countries. “This is a reflection of the strengths of Indian economy...” he said.
Promising more autonomy and flexibility to the PSEs, the prime minister said more power has been given to the boards and ‘Navratna’ and ‘Miniratna’ companies so that they can stay competitive in the market place.
Besides, innovative salary structures have been devised, he said adding that the incentives for the employees have been linked to individual, group as well as company performance.
