Navratnas to be retained

New Delhi, Feb 25 | Updated: Feb 26 2005, 05:58am hrs
Profit-making public sector undertakings (PSUs) will not be privatised, the Survey has reiterated. Privatisation will be considered on a transparent and consultative case-by-case basis, according to the common minimum programme. The disinvestment process, which began in 1991-92, shifted focus to strategic sales 1999 onwards, the Survey has said.

Now, the government is committed to a strong and effective public sector whose social objectives would be met by commercial functioning. There is a need for selectivity and strategic focus, it added.

The government is committed to retain existing navratna companies in the public sector, while these companies would be encouraged to raise resources from the capital market.

Although effort will be made to revive sick units, chronically-loss making companies would be either sold off or shut down. However, the Survey has said that workers would get their legitimate dues and compensations. Also, the private sector would be roped in to revive those PSUs which have potential for revival.

A decision has been taken to set up a Board for Reconstruction of Public Sector Enterprises (BRPSE). This board would advise the government on ways and means for strengthening PSEs. The board would also advise the government on disinvestment/closure/sale of loss-making enterprises.

The government has also approved the constitution of a National Investment Fund comprising proceeds from disinvestment of public sector units. The fund would look at investing in social sector projects and capital investment in selected profitable PSEs.

Apart from that, the government has also given an in principle nod for listing of profitable PSEs with networth of over Rs 200 crore.