(a) the policy of the Government with regard to disinvestment of profit-
making as well as loss-making Public Sector Undertakings (PSUs); and
(b) the details of such PSUs to be disinvested during 2009-10 and 2010-11
alongwith the extent of disinvestment proposed in each case?
THE MINISTER OF FINANCE (PRANAB MUKHERJEE)
(a) & (b) A statement is laid on the Table of the House.
Statement referred to in part (a) and (b) of Lok Sabha Starred Question No.35 for 20.11.2009
by Shri Ramesh Rathod and Shri Tathagata Satpathy regarding Disinvestment in PSUs
(a) The policy on disinvestment articulated in the President`s Speech to joint
Session of Parliament on 4th June, 2009 and Finance Minister`s Budget
Speech on 6th July, 2009 requires the development of `people ownership`
of Central Public Sector Undertakings (CPSUs) to share in their wealth and
prosperity, with Government retaining majority shareholding and control,
This objective is relevant to profit-earning CPSUs as it is only these that
will sustain investor-interest for sharing in their prosperity.
In line with this policy announcement, Government has decided that:
(i) already listed profitable CPSUs not meeting the mandatory public shareholding of 10% are
to be made compliant; and
(ii) all CPSUs having positive networth, no accumulated losses
and having earned net profit for three preceding consecutive years, are to be listed through
public offerings out of Government shareholding or issue of fresh equity by the company or
a combination of both.
(b) The Department of Disinvestment is in dialogue with the administrative
Ministries and the CPSUs to assess their capital expenditure requirements
through issue of fresh equity. Disinvestment is a continuous process and
each case is considered on a case-by-case basis for approval by
Government in accordance with disinvestment policy.