SCOPE chief favours disinvestments, with caution
New Delhi   22-Sep-2008
Sarthak Behuria, Chairman, Standing Conference of Public Enterprises (SCOPE) and Chairman, IndianOil while addressing the 35th AGM of the apex body said SCOPE favours disinvestment of Government's equity in public sector enterprises through Initial Public Offers (IPOs) without diluting the basic character of public sector enterprises (PSEs). He said the government has given the green signal to IPOs and follow-on-offers to the disinvestment of its equity in order to give boost to India's equity market. He, however, cautioned that "the government needs to ensure that there is no flooding of the PSEs issues in the market for listing purposes or else, it would eat into their own valuation and also that the basic character of these undertakings is not changed". The SCOPE Chairman said disinvestment of Government equity in PSEs would bring change in their governance and corporate accountability in leading to professionalization in their working and increasing efficiencies. Sale of partial equity will give exchequer a much needed and welcome option of raising resources.