Disinvestment of PSUs could boost the Economy?

Indian economy has been reeling under the global slowdown and the performance of various sectors show sign of slow progress. The growth of 5 per cent of GDP is the lowest figures as estimated for the last fiscal year.

Need of the hours is for the strong fiscal policy and economic reform from the government and more liquidity pumping from the apex bank. The Reserve Bank of India, considering the fiscal health of the economy, moderated the cash reserve ratio and key interest rates recently.

The RBI will also add around many thousand crores rupees into the system through open market operation, which is one of the core credit policies of the apex bank. And the government also need huge amount of money that could be used in various social welfare schemes.

For that the government may favour disinvesting stakes in the Public Sector Undertakings (PSUs) in the next fiscal year 2013-14, that says there would encouragement for disinvestment policies in the days to come.

The disinvestment of stakes in PSUs has been normal process, as many previous government of India have backed and carried out major disinvestments to bail out the economy.

The successful disinvestment of stakes will help the government to generate funds to meet the requirements and support many social welfare schemes in the country.

Here is the list of companies; stakes of these companies were sold through disinvestment process in India:

• NBCC
• ONGC
• MOIL LTD.
• COAL INDIA LTD.
• POWER GRID CORP.OF INDIA LTD.
• ENGINEERS INDIA LTD.
• SJVN LTD.
• NMDC LTD.
• RURAL ELECTRIFICATION CORP.LTD.
• NTPC LTD.
• OIL INDIA LTD.
• NHPC LTD.
• SHIPPING CORP.OF INDIA LTD.,THE
• POWER FINANCE CORP.LTD.