Government to list all profit-making PSEs
05 Nov 2009
The government has decided that all unlisted central public sector enterprises (CPSEs) having positive net worth, no accumulated losses, and having a net profit in the three preceding consecutive years should get listed on the stock exchanges and that all profitable listed (CPSEs) should meet the mandatory listing of 10 per cent public ownership.
Stating this at a briefing after a cabinet meeting, home minister P Chidamabaram said the disinvestment proceeds would be channeled into the National Investment Fund (NIF).
The corpus comprising deposits from April 2009 till March 2012 would be available in full for investment as capital expenditure in specific social sector schemes determined by the Planning Commission and the department of expenditure.
"In view of the tight fiscal situation and the need to fund social security programmes, special dispension is being made for a three-year period: 2009 to 2012," he said.
The proceeds of the disinvestment will be used for capital expenditures on social security programmes, Chidambaram added, but clarified monies gained so far this fiscal year from stake sales would not be used for social sector spending.
This is a change from the government's earlier stand that the money will be ploughed back into investments rather than on government expenditure.
