If markets improve, Praful will sell PSUs
17 May 2012 3:05 AM GMT
The government on Wednesday said as and when the market condition improves, more state-owned units will be offered for a partial disinvestment.
'The stock market sentiment is being not what it is. I think there is a slowdown in the disinvestment process. As and when the market sentiment improves, more and more PSUs will be offered for a partial disinvestment,' minister of heavy industries and public enterprises Praful Patel on Wednesday said, after releasing the National Survey on State-Level Public Enterprises 2007-08.
Patel said more public participation in the state-owned units will make them more accountable and will benefit PSUs in the long-run.
The government has fixed a target of Rs 30,000 crore from disinvestment of CPSEs in the current fiscal. In the last fiscal, against a target of Rs 40,000 crore, owing to volatile stock market conditions, the government could mop up only Rs 14,000 crore.
Of the total 220 operational CPSEs, 158 units were profit-making as on March, 2011.
On imposition of duty on imported power equipment, Patel said, 'We have been demanding it for long time and it is important because the power sector has shown a slowdown. It is a cause of worry to all of us and especially for the capital goods companies like BHEL and L&T.'
Therefore, there is a need to provide a level-playing field to the domestic industry which is facing stiff competition mainly from Chinese firms, he added.
In March, the Cabinet deferred a proposal for levying 19 per cent duty on power generation equipment for projects with capacity of 1,000 megawatts (MW) and above. An announcement on the issue was expected in the Union Budget 2012-13, but nothing had happened in this regard.
Currently, equipment imported for projects of less than 1,000 MW capacity attract a 5 per cent customs duty, while those above that are exempted.
'The stock market sentiment is being not what it is. I think there is a slowdown in the disinvestment process. As and when the market sentiment improves, more and more PSUs will be offered for a partial disinvestment,' minister of heavy industries and public enterprises Praful Patel on Wednesday said, after releasing the National Survey on State-Level Public Enterprises 2007-08.
Patel said more public participation in the state-owned units will make them more accountable and will benefit PSUs in the long-run.
The government has fixed a target of Rs 30,000 crore from disinvestment of CPSEs in the current fiscal. In the last fiscal, against a target of Rs 40,000 crore, owing to volatile stock market conditions, the government could mop up only Rs 14,000 crore.
Of the total 220 operational CPSEs, 158 units were profit-making as on March, 2011.
On imposition of duty on imported power equipment, Patel said, 'We have been demanding it for long time and it is important because the power sector has shown a slowdown. It is a cause of worry to all of us and especially for the capital goods companies like BHEL and L&T.'
Therefore, there is a need to provide a level-playing field to the domestic industry which is facing stiff competition mainly from Chinese firms, he added.
In March, the Cabinet deferred a proposal for levying 19 per cent duty on power generation equipment for projects with capacity of 1,000 megawatts (MW) and above. An announcement on the issue was expected in the Union Budget 2012-13, but nothing had happened in this regard.
Currently, equipment imported for projects of less than 1,000 MW capacity attract a 5 per cent customs duty, while those above that are exempted.
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