'Need to improve governance, deliverability to enhance country's growth': SCOPE

NEW DELHI: Pointing out that disinvestment is not a "panacea" for meeting the fiscal deficit, the apex body of PSUs in the country SCOPE has said there is need to improve governance and deliverability to enhance the country's growth.

Besides, SCOPE Director General U D Choubey also said path breaking reforms are needed in terms of a clearly defined ownership policy for improving governance of public sector enterprises.

Observing that for over six decades, there is no ownership policy with respect to PSUs separately, Choubey said: "In the absence of such a policy, passive ownership has made PSEs an extended arm of the Administrative ministries".

Choubey said there should be a well-documented ownership policy from the administrative ministry so that the PSE boards are run efficiently and independently.He was speaking at a function organised by the Petroleum Federation of India (Petrofed) on Saturday.

Choubey also stressed on the need to constitute Sovereign Committee of the Government and consolidate its holding in PSEs as it would provide better productivity and decision making to PSE Boards. In the interim Budget for 2014-15, the government lowered the PSU stake sale target from Rs 40,000 crore to Rs 16,027 crore.