Pandey said the performance of Central Public Sector Undertakings (CPSEs) has improved due to corporate governance activities and their shares are giving better returns to the shareholders as compared to standard stock market indices.
He said Indian companies are managing complex businesses both at home and abroad. Private companies need to focus on investment in CPSEs in the form of old project takeovers which will benefit from increased production and job creation.
Therefore, in the current context of the economy, if we go for capital formation, growth and look at this decade as the decade of India, we have to open up investment opportunities now. And one of the investment opportunities is investing in an old project.
It is noteworthy that a day earlier, Finance Minister Nirmala Sitharaman had asked the industry to give up hesitation and take decisions without doubting their ability.
DIPAM has selected more than half a dozen companies for strategic sale. These include BEML, Shipping Corp, CONCOR (Container Corporation), Vizag Steel, IDBI Bank, Nagarnar Steel Plant of NMDC and HLL Lifecare.
Giving examples of privatization and positive changes in Air India and NINL, the Secretary said that the private sector is moving more rapidly in the field of efficiency, decision making and technology.
“We should clearly look at disinvestment from the point of view of reforms rather than from the fiscal point of view,” he said.
Source: navbharattimes.indiatimes.com
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