Namrata Kath Hazarika | 10 Nov, 2009
The government has set a clear target for the selection of companies for disinvestment of public sector enterprises (PSEs), said Arun Marai, Member, Planning Commission in New Delhi on Monday. However Marai clarified that the government has not set any timeline or target for disinvestment of these enterprises.

He explained that it is sensible to think beyond the set target. "It is a good direction that we have set up. Let us have a good process and shoot beyond any (disinvestment) target. I think it is sensible, we will get maximum amount," Marai told reporters at the sidelines of a Confederation of Indian Industry conference on multinational corporations.

When asked whether there is the lists of companies for disinvestment in PSEs he further added, "There must be the list of companies for divestment of PSEs."

"The money that is being raised it is also going to be used for social programs. These social programs require a large amount of money. This money directly comes from the government budgets. It is necessary that those money be spend on the need of the people, which will help in reducing fiscal deficit," he added.

The Government has recently given the nod for listing of yet unlisted PSEs that have been profitable for three years. It has also allowed listed PSEs to offer up to 10 percent shares for public ownership.

In the current fiscal, around Rs 4,000 crore has already been raised by the government from the sale of its shares in NHPC (National Hydroelectric Power Corporation) and OIL (Oil India Ltd).

It has also approved disinvestment in other PSEs like Rural Electrification Corporation, Sutluj Jal Vidyut Nigam and NTPC (National Thermal Power Corporation). In total more than 100 PSUs, like NMDC, MMTC and BSNL, are expected to offload a percentage of Government holding.