With the economy reviving fast and stock markets showing positive signs, the Centre has decided to garner Rs.40,000 crore in 2010-11 from the sale of its equity in public sector undertakings (PSUs) in 2010-11 against Rs.25,000 crore targeted in the current fiscal.
In his budget speech on Friday, Union Finance Minister Pranab Mukherjee said: “Listing of Central Public Sector Undertakings improves corporate governance, besides unlocking the value for all stakeholders — the government, the company and the shareholders. Through this process, I propose to raise a higher amount during the year 2010-11. The proceeds will be utilised to meet the capital expenditure requirements of social sector schemes for creating new assets.
“Ownership has been broad-based in Oil India Limited, NHPC, NTPC and Rural Electrification Corporation, while the process is on for National Mineral Development Corporation and Satluj Jal Vidyut Nigam. The government will raise about Rs.25,000 crore during the current year.”
Mr. Mukherjee said the market capitalisation of five companies that have been listed since October 2004 has increased by 3.8 times from the book value of Rs.78,841 crore to a whopping Rs.2,98,929 crore.
