SCOPE says Budget "morale booster" for PSUs

NEW DELHI: Lauding the Centre for bringing back PSUs into limelight through key Budget announcements, Standing Conference of Public Enterprises on Friday said it envisages the government''s commitment to make public sector units globally competitive.

"After several years, PSEs have a morale boosting Budget which underlines government''s deep commitment for a strong and effective public sector operating in a competitive environment," Director General of SCOPE S M Dewan said in a statement here.

Stressing that the decision of setting up Board for Reconstruction of PSEs was a "step in the right direction", he expressed hope that it would decide prudently on cases for restructuring and disinvestment on the basis of merit.

"We hope it would function in a more professional manner and decide cases for restructuring and disinvestment on merit," he said.

SCOPE also agreed to the proposed equity dilution in profit-making PSEs through IPO route, provided the public sector''s structure is maintained.

Dewan complimented Finance Minister P Chidambaram for "broad-basing" reforms and rightly focusing on the basic needs of the poor and rural sector in the budget.

He appreciated the restructuring and rescue packages announced for Hindustan Antibiotics Ltd and ITI Ltd.

Dewan, however, said the sector was expecting much more focussed attention and clearly laid down policy. Even public-private partnership had been briefly touched only in areas of technical education. "Public-private partnership in reviving sick PSEs as mentioned in CMP has been conspicuous by its absence," he added.