Centre's policy is to strengthen PSUs: Pranab

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)

12 October 2009

Monday 12 October, 2009.

Centre's policy is to strengthen PSUs: Pranab

Describing reports that government was trying to privatise the public sector as a "malicious propaganda", Union Finance Minister Pranab Mukherjee on Saturday said the Centre's policy was to strengthen PSUs and not weaken them.

Such propaganda is "far from truth", Mukherjee said in his inaugural address at the 29th national conference of the Indian National Trade Union Congress (INTUC), the trade union wing of the Congress in Kochi.

The government's policy was clearly spelt out in the Congress manifesto and reiterated by President Pratibha Patil in her address to the 15th session of the Lok Sabha, the Minister said.

"Where is the question of weakening the public sector. The policy of the government is quite clear. The policy of the government is to strengthen the public sector units," he said.

Citing examples, he said Indian Oil Corporation had divested five per cent of its shares recently after which its market value had gone up by 124 per cent.

It has not been diluted. The shares have been bought by ONGC and other public sector enterprises.

After divestment of 10 per cent shares which had been heavily oversubscribed, the value of the company, National Hydel Power Corporation, went up by 96 per cent.