There is a need to rationalise the existing guidelines of CPSEs to comprehensively capture various aspects of capital restructuring with focus on expansion of economic activities by state-run companies, a top official said today.
Secretary in the Department of Investment and Public Asset Management Neeraj Kumar Gupta said the government has adopted a multi-pronged approach to manage its investment in central public sector enterprises (CPSEs).
The government was looking at strategic disinvestment by exiting from non-strategic business; promoting efficiency and professional management of the company and unlocking optimum economic potential of business enterprises, he said.
Addressing an event here, Gupta said disinvestment of CPSEs through minority stake sales; listing of profitable CPSEs and strategic disinvestment was one of the approaches.
Also government was managing investment in CPSEs by capital restructuring for optimising returns on investment and financial restructuring for revival and strengthening of CPSEs. However, the real challenge, the Secretary said was to work out the backward and forward linkages.
Highlighting the investment opportunities in India, Gupta said that investment in G-sec papers with fixed demand which is uniformly spread over the years and auction schedule announced in advance. Other options were equity investment in CPSEs, strategic disinvestment and exchange traded fund.
Giving an overview of the Indian capital market, the Secretary said that the annual return has been 11.3 per cent over the last two decades. The Indian capital market has been performing better than other emerging economies like China, Korea and Brazil. India is among the best performing markets in its peer group.