PSE share listing planned

Shares of #Railway Public Sector Enterprises (PSEs) like #IRCTC, #IRFC and #IRCON will be listed in stock exchanges, announced #Finance Minister Arun Jaitley in Budget 2017-18 on 1 Feb 2017.

The Government will encourage strengthening the corporations through consolidation, mergers and acquisitions and soon create an integrated public sector “oil major”, he added.

Stating that the #Pradhan Mantri Mudra (Micro Unit Development and Refinance Agency) Yojana (PMMY) has proved an overwhelming success in extending funds for the deprived sections, Jaitley doubled the budget target under the scheme to Rs.2.44 lakh crores.

Easing the stressed legacy accounts of banks, Jaitley earmarked Rs.10,000 crores for recapitalisation of Banks in 2017-18 and assured need based additional allocation.

Stating that the disinvestment policy announced in the last budget will continue, Jaitley further said that the Government will put in place a revised mechanism and procedure to ensure time bound listing of identified major public sector enterprises on stock exchanges.

This will foster greater public accountability and unlock the true value of these companies, he added.

These heavyweight state businesses will be integrated across the value chain of an industry through consolidation, mergers and acquisitions, he said.

By adopting these methods it will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders, he added.

Possibilities of such restructuring are visible in the oil and gas sector.

The Government proposes to create an integrated public sector “oil major” which will be able to match the performance of international and domestic private sector oil and gas companies.

The Finance Minister said that the Exchange Trade Fund (ETF), comprising shares of 10 corporatized state enterprises, has received overwhelming response in the recent Further Fund Offering (FFO).

The Government will continue to use ETF as a vehicle for further disinvestment of shares.

Accordingly, a new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18, he added.

Jaitley said that the focus on resolution of stressed legacy accounts of Banks will continue and the legal framework has been strengthened to facilitate resolution, through the enactment of the Insolvency and Bankruptcy Code and the amendments to the SARFAESI and Debt Recovery Tribunal Acts.

In line with the “Indradhanush” roadmap, an amount of Rs. 10,000 crore is provided for recapitalisation of Banks in 2017-18 and additional allocation will be provided, as may be required, he added. fii-news.com