November 6, 2009 12:02 PM

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Centre approves 10% public holding in all listed Public Sector Undertakings

The government has made it mandatory for all listed profitable central public sector enterprises to off load 10 per cent equity for public ownership. Briefing media on the decisions taken by the cabinet Committee on Economic Affairs in New Delhi, the Home Minister Mr P Chidambaram said, all the unlisted CPSEs, which have been having net profit in the three preceding consecutive years with no accumulated losses should also get listed on the stock exchange. He said that instead of the proceeds going to National Investment Fund, it will go for capital expenditure in social special sector. He said that this special dispension has been made for a three year period from April 2009 given the tight fiscal situation and the need for funding the social sector programmes. Our correspondent says that the President in the joint sitting of parliament in July this year had expressed the government intention to encourage peoples' participation in the disinvestment programme. It had been mentioned that public sector undertakings are the wealth of the nation and part of the wealth should rest in the hands of people while retaining at least 51 per cent government equity in the enterprises. In an other decision, the government has decided to raise the minimum support price for Rabi crops of 2009-10 season. The MSP for wheat has been increased by 20 rupees per quintal, now the price fixed is 1100 per quintal. The MSP for Barley has been increased by 70 rupees and gram as well as Safflower by 30 rupees each. The MSPs of other Rabi crops will remain unchanged at the last year's level.

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