PSU autonomy to stay, says PM

For listing more state-run firms on SEs

“We will continue to take steps to strengthen the public sector to enable it to play the role expected of it in a modern, fast growing economy,” he said while giving away the Standing Conference of Public Sector Enterprises (SCOPE) Excellence Awards here.

While asserting that PSEs are here to stay in the Indian economy Singh said “We have delegated more powers to the Boards of navratna and miniratna companies in order to facilitate further improvement in their performance.”

He emphasised the need for public sector to operate in an increasingly open environment and thereby face the challenge of increased competition both domestically and globally.
In this context Singh said the government was encouraging the listing of PSEs on the stock markets as this would unlock the true value of a company, improves its corporate governance standards and also help it in raising resources for funding future expansion plans. The listed ones on the Stock Exchanges account for more than 24 per cent of the total market capitalisation of the Bombay Stock Exchange (BSE), he said.

Steady profits
“In terms of market capitalisation, of the top-10 listed companies on the BSE, five are PSEs. More and more PSEs are entering the capital markets and are striving to become active global players,” he said. Over the years, the number of PSEs making profits has steadily increased while the number of those which are loss making has been on the decline, he said.Referring to ongoing global slowdown and its impact on the economy, Singh said the slowdown phenomenon, which affected large part of the world, was showing “some signs of moderating only now.”

“India has weathered the slow down better than most other countries. Ours today happens to be the second fastest growing economy in the world. This is a reflection in large measure, of the strengths of the Indian economy, one of which is a robust and reliable public sector,” he said.