PM favours listing, more autonomy to PSEs

Prime Minister Manmohan Singh today favoured listing of more public sector companies on the stock exchanges as a means to professionalise their boards and said the government was working towards limiting its role in their everyday functioning.

"It may be useful for more public enterprises to be listed on the stock exchange as this would enhance professionalism of the board of directors and empower independent directors," Singh said at the Conference of Chief Executives of Public Enterprises here today.

He said the induction of independent directors on the board of PSEs would ensure greater efficiency and effectiveness in decision making.

At present 44 of the total 239 central public enterprises are listed on Indian stock exchanges, MTNL is listed on New York Stock Exchange while GAIL and SAIL are listed on London Stock Exchange.

Singh said government was committed to a stronger and vibrant public sector and it wanted to empower it with full managerial and financial autonomy.

"Our government is working towards limiting the administrative ministries' role in the day-to-day management of public enterprises. I hope, steps we intend to take will help our public enterprises become more globally competitive," he said.

"Excessive regulation restricts entrepreneurial drive and makes management risk averse," Singh said adding public sector too can foster entrepreneurship but that requires an environment that encourages risk taking and offers adequate freedom to the senior management to take quick and difficult decisions.