November 5, 2009 8:10 PM

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Govt asks all profitable listed CPSUs to hold min 10 pc public holding; raises wheat MSP by Rs 20

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 media on the decisions taken by the cabinet Committee on Economic Affairs in New Delhi on Thursday, 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.<br/>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.<br/>AIR 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.<br/>The government today announced a token increase of 20 rupees a quintal in the procurement price for wheat next year, a move that is aimed at stabilising the retail prices as also give positive signal to farmers. <br/>As on 1st October, the Centre had 28.4 million tonnes of wheat in the buffer stock against a norm of 11 million tonnes. Home Minister P Chidambaram said after the meeting of the Cabinet Committee on Economic Affairs that the MSP of wheat has been fixed at Rs. 1,100 rupees per quintal, marking an increase of 20 rupees per quintal over the last year's MSP. <br/>Last year, the government had raised wheat MSP by 80 rupees to 1,080 rupees a quintal. But this year, the Centre seems to have decided to give nominal increase as prices of essential food items are rising because farm production have been hit due to drought and floods.<br/>

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