The Hindu : Business : PM asks more PSEs to get listed

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Friday, Mar 09, 2007
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PM asks more PSEs to get listed

Special Correspondent

Suggests mergers and acquisitions and creation of joint ventures

PHOTO: PTI

PAT ON THE BACK: Prime Minister Manmohan Singh presents SCOPE Excellence Award 2004-05 in Institutional category to SAIL Chairman S. K. Roongta at a conference of Chief Executives of Public Sector Enterprises, in New Delhi on Thursday.

NEW DELHI: Observing that it is wrong to assume that entrepreneurship is confined to the private sector, Prime Minister Manmohan Singh on Thursday public sector enterprises (PSEs) to seize the opportunities for mergers, acquisitions, amalgamations and takeovers and creating new joint ventures.

Inaugurating the conference of PSE chief executives here on Thursday, Dr. Singh assured them that revitalisation of the public sector was an integral part of the Government's strategy to promote inclusive growth.

Reviving sick units

Expressing happiness over the fall in the number of loss making PSEs from 79 to 58, he asked the Board for Reconstruction of PSEs to come forward with time-bound programmes for the revival of sick PSEs. "It must help the Government take an early decision on all pending proposals,'' he observed.

He underlined the need to improve corporate governance in PSEs and adhere to the code of corporate ethics and conduct.

Referring to state level PSEs, which also required change and adapt, he emphasised the need to find viable means to revive and sustain such enterprises and ensure that the interests of workers and employees are not hurt owing to political interference and bad management. Pointing out that the PSEs today share business space with Indian firms and global multinationals, Dr. Singh complimented the PSEs for standing their ground against fierce competition.

"This is a tribute to your managerial competence, to the dedication of your workers and employees and management to our joint national commitment to the revitalisation of public enterprises as a major engine of India's economic growth. I am happy to say that in these past two years you have done a creditable job in turning around many of our public enterprises. There has been an improvement in their financial and physical performance. I compliment you all for this solid achievement.''

The Prime Minister suggested that more PSEs should be listed on the stock exchange to enhance professionalisation of the board of directors and empower independent directors. PSEs should also grant adequate freedom to the chief executive and his senior management to take quick and difficult decisions. Excessive regulation restricted entrepreneurial drive and made management risk averse. "That is not the way to go forward in the fast changing world full of uncertainty — the overall environment in which our enterprises operate,'' he said.

PSEs should also evolve their own code of corporate ethics and conduct and ensure adherence to such codes. The Government was working towards limiting the administrative ministries' role in their day-to-day management. "I hope the steps we intend to take will help our public enterprises to become more globally competitive,'' the Prime Minister observed.

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