New Delhi, Feb 1 (IANS) Listing and consolidation of central public sector enterprises (CPSE) will foster greater transparency and increase their risk-bearing capacity, Finance Minister Arun Jaitley said on Wednesday.
He said a new CPSE exchange traded fund (ETF) for diversified central government companies will be launched.
Presenting the 2017-18 Budget in the Lok Sabha, Jaitley said: "Listing of public sector enterprises will foster greater public accountability and unlock the true value of these companies."
He said the government will come out with a revised mechanism and procedure for time-bound listing of identified CPSEs on stock exchanges.
He said the shares of public sector enterprises in the Railway sector like Indian Railway Catering and Tourism Corporation, Indian Railway Finance Corporation Limited and Ircon International Limited will be listed on the stock exchanges.
Jaitley said the government sees opportunities to strengthen the CPSEs through consolidation, mergers and acquisitions and integrate them across the value chain of an industry.
"It will give them capacity to take higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders," he said.
According to him such restructuring possibilities exist in the oil and gas sector.
Jaitley said the government will continue to use ETF as a vehicle for further disinvestment of shares.
A new ETF with diversified CPSE stocks and other government holdings will be launched in 2017-18.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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