The government looks set to restart the stalled disinvestment programme, with the Cabinet this month approving proposals for sale of government stakes in companies like Oil India, MMTC, Hindustan Copper and Nalco. Besides, PSU majors like Sail and Bhel are already on the government?s disinvestment list. Last financial year, the government could raise only R14,000 crore against a target of R40,000 crore target. The target for the current fiscal is less ambitious at R30,000 crore. But meeting this target could be still be a challenge for the government given the prevailing market volatility. UD Choubey, director general, Scope, an apex body of central public sector enterprises, discusses disinvestment issues with FE?s Noor Mohammad. Excerpts:

The government is resuming disinvestment despite a volatile market. What is Scope?s view on this?

Some inherent advantages of listing are that it brings empowerment and improve governance and corporate accountability in PSEs, leading to further efficiencies. Listing allows for greater people ownership of CPSEs and sharing of their prosperity with the general public. Scope has therefore supported the listing of PSEs.

What according to you would be the best way to utilise the disinvestment proceeds?

Many PSEs have expansion plans. They are also taking up activities for promoting inclusive growth and weaker sections of the society. A part of disinvestment proceeds should be earmarked for the same. Further, technology, R&D and innovation are very important components of growth. A major portion of the proceeds should also be given to PSEs for meeting their R&D expenditure.

How has the public sector fared as a wealth creator?

There is no gainsaying that the entry of the public sector in the market has contributed to making the stock market buoyant. IPOs of many PSEs have been oversubscribed several times, reflecting the faith the general public has in PSEs. The spectacular performance of Coal India on the bourses has made history as the biggest IPO in the country with government realising about R15,199 crore. Since 2009-10, the government has come out with 14 PSE issues, including six IPOs, generating about R59,700 crore.

As far as PSEs as a whole at the bourses is concerned, there are 50 listed PSEs, 46 of them were listed on the BSE. They constitute about 21% of total market capitalisation of the 4,977 companies listed on the BSE?this means less than one percent PSEs account for 21% of the total market capitalisation.

How is Scope helping PSEs in their image building endeavour?

The apex body in addition to promoting excellence in PSEs and enhancing their global competitiveness is also proactively engaged in building the image of the public sector as a whole and helping PSEs in showcasing their achievements. Recent historic steps by us have been the observance of the Public Sector Day and launch of the Public Sector Flag. To give a boost to image building by individual PSEs, Scope?s steering committee on corporate communication has been holding skill building programmes to strengthen the knowledge base and effectiveness of corporate communication professionals in PSEs. It is also deliberating innovative image-building initiatives for PSEs in a synergised manner.

Globalisation requires that the top management of PSEs acquire global perspective and approach to lead the enterprises. Scope has initiated an Advanced Global Leadership Programme in collaboration with IIM-Calcutta to give aspirants for board-level positions exposure to the international trends in trade and technology. Scope, in order to help and guide the top and senior executives of PSEs in the art of media interaction and relations, is organising a workshop on ?Enhancing Media Relations Techniques of Top Management of PSEs? which will impart hands-on skills in media relations management.

Good corporate governance practices and CSR can help build the image of an organisation and attract investors. What are PSEs doing on this front?

Corporate governance has emerged as a benchmark for judging corporate excellence in the context of national and international business practices. It is recognised as a paradigm for improving competitiveness and enhancing efficiency, and thus improving investors? confidence and accessing capital, domestic and foreign. PSEs have adopted high standards of corporate governance in their functioning. They have several checks and balances and regulatory norms in place to conduct their business.

CSR is an essential ingredient of corporate governance. PSEs in their pursuit of the triple bottomline of People, Planet and Profit, have assigned high priority to adherence to the ideals of CSR. They, as responsible corporate citizens, are rendering yeomen services towards the country?s all-round sustainable development.