PSEs to get managerial

New Delhi, Mar 8: Giving a categorical assurance that Public Sector Enterprises will be empowered with full managerial and financial autonomy, Prime Minister Manmohan Singh today called for more government companies getting listed on stock exchanges and taking recourse to amalgamations and mergers.

Addressing the Annual Conference of Chief Executives of Public Enterprises here, Dr Manmohan Singh stressed the need for finding viable means to revive and sustain state level PSUs and ensuring that the interests of workers and employees are not hurt due to 'political interference and bad management'.

The Prime Minister spoke about the need to unshackle the Public Sector Enterprises (PSEs) and gave a host of suggestions to improve their functioning.

Others who addressed the gathering in the inaugural session included Minister of Heavy Industries and Public Enterprises Santosh Mohan Dev, Minister of State for Heavy Industries Kanti Singh and SCOPE Chairman Sarthak Behuria.

The event was organised by the Standing Conference of Public Enterprises (SCOPE).

The Prime Minister commended the Public Sector for registering handsome growth in net profits, turnover, contribution to national exchequer and foreign exchange earnings.

''I am pleased to learn that the total number of loss making PSEs has fallen from 79 to 58 last year. I hope the Board for Reconstruction of PSEs (BREPSEs) will come forward with a time bound programme for revival of PSEs. It must help the government take an early decision on all pending proposals,'' Dr Singh said.

''It may be useful for more public enterprises to be listed on the stock exchanges, as this would enhance professionalisation of the Board of Directors and empower Independent Directors. Induction of Independent Directors on the Boards of PSE would ensure greater efficiency and effectiveness in decision-making.'' ''We must pay greater attention to how we identify independent directors and ensure that they are indeed truly independent professionals who bring with them both expertise and a reputation of good governance and high professional conduct,'' Dr Singh said.

Going beyond organisational issues, the Prime Minister said public sector enterprises need a new strategic vision.

In the increasingly globalised world they operate in, the PSUs must learn from the private sector and seize opportunities for ''mergers, acquisitions, amalgamations, takeovers and creating joint ventures.'' ''This should be an integral part of their business staregy to create shareholder value, become cost effective, reduce the cost of finance and increase their market share. I believe that many joint ventures and alliances both between public enterprises and between public and private enterprises are being worked out. Such joint ventures and public-private partnerships can help the public sector benefit from the private sector's competitive advantages,'' he said.

The Prime Minister said it was wrong to assume that entrepreneurship is to be found only in the private sector and added that public sector too can foster entrepreneurship.

''But this requires an environment which encourages risk taking, empowers professionalism and offers adequate freedom to the Chief Executive and his senior management to take quick and difficult decisions,'' he said.

Dr Singh said his government is working towards limiting the role of administrative ministries in the day-to-day management of public enterprises. ''I hope the steps we intend to take will help our public enterprises to become more globally competitive.'' The Prime Minister asked the PSUs to evolve their own code of corporate ethics and conduct and ensure adherence to such a code.

Saying that revitalisation of the public sector was an integral part of the strategy for promoting 'inclusive growth', the Prime Minister expressed satisfaction that in the past two years these enterprises have done a 'credible job' in turning themselves around.

Mr Dev said his Ministry will take pro-active steps to facilitiate improvement in Central Enterprisies.

Mr Behuria said time was opportune to unleash the chains that the public sector is tied to, to enable it to find its place in the world market.

UNI