Economic Survey favoured high professionalism and autonomy to CPSE

Sarkaritel
By Sarkaritel February 1, 2020 06:35


By Prakash Bhargava

New Delhi –The Economic Survey 2019-20 suggests that Government can transfer its stake in the listed CPSEs to a separate corporate entity and this entity would be managed by an independent board and would be mandated to divest the Government stake in these CPSEs over a period of time.

This will led to “professionalism and autonomy to the disinvestment programme which, in turn, would improve the economic performance of the CPSE” the survey noted.

The Survey says that in November, 2019, India launched its biggest privatization drive in more than a decade and  “in-principle” agreed to reduce Government of India’s paid-up share capital below 51 percent in select Central Public Sector Enterprises (CPSEs). To examine the efficiency gains from privatization and whether the purported benefits of privatization have indeed manifested in the Indian context, the Survey analyses the before-after performance of 11 CPSEs that had undergone strategic disinvestment from1999-2000 to 2003-04.

Presenting the Economic Survey 2019-20 in Parliament today, Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman said the Survey affirms that disinvestment improves firm performance and overall productivity, and unlock their potential to create wealth. This would have a multiplier effect on other sectors of the economy. Aggressive disinvestment, preferably through the route of strategic sale, should be utilized to bring in higher profitability, promote efficiency, increase competitiveness and to promote professionalism in management in CPSEs, the Survey advocates.

Sarkaritel
By Sarkaritel February 1, 2020 06:35