Monday, June 8, 2009

PSU India

PSU means “Public Sector Undertakings”. Many people don’t know much about the PSU Companies of India. So I have made this separate post about detailed information about PSU India. Several PSUs of India are listed on the stock exchanges and publically traded. In All the PSUs, right now the Government’s stake is above 75%.

Here is a Popular List of PSU India -

Name                                 Govt. Holding

- NMDC                        98.38 %

- NTPC                         89.5%

- MMTC                        99.33 %

- SAIL                          85.82 %

- PGCIL                         86.36%

- BHEL                          67.72 %

- Hind Copper                99.59%

- Neyveli Lignite             93.56 %

- PFC                           89.78 %

- NALCO                       87.15 %

- ONGC

- VSNL

- Air-India

- BPCL

- IOC

- Gujarat Dairy Development Corporation

- ITI Limited

[To view the Full List, please go to the resources link at the end of this article.]

Now let us discuss that, How rich Indian Government is. India can wipe out its entire fiscal deficit of Rs. 3,30,000 crore if the government brings down its holding in about 2 dozen state run firms to 51%.

If government of India sells stake in all PSUs where it holds more than 51% than it can raise around Rs. 3,40,000 which is much more than current fiscal deficit of Rs.3.30 Lakh crore.

According to economists, the government should try to sell a small stake of around 10% in the profitable PSUs rather than going for any major stake sale. This will not only help it generate revenues but also implement the exercise in a smooth way.

And even if the government reduce its holding in PSUs by up to 75% than also we can bridge more than one third of the current fiscal deficit. Even though, this is a time of global economic slow down, Indian retail investors are waiting for good IPOs to come.

Right now, the government of India is holding a major bulk of stake (above 75%) in these public sector undertaking companies. In some companies, it owns more than 95% of stake. So the stake sell will help the Indian government to bridge the fiscal deficit.

Useful Resources -

01) Complete List of PSU India

02) Rediff: PSU Quiz of India – Take a quiz & increase your knowledge

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