Boost strategic sales, create a tenure similar to Temasek
NEW DELHI: It should be used aggressively, preferably through the strategic sales route, to generate greater profitability, promote efficiency, increase competitiveness and promote professionalism in the management of state-owned enterprises, according to the Economic Survey.
He said that the focus of strategic divestment should be to get out of non-strategic businesses and move towards optimizing their economic potential. This, in turn, will unlock capital for use in other places, especially in public infrastructure such as roads, power transmission lines, sewage systems, irrigation systems, railways and urban infrastructure.
By stating that the objective of any privatization or divestment program should be to maximize the value of the government's shareholding, the survey supported the idea of creating a holding company on the Singapore lines. The government can transfer its participation in listed companies in the central public sector to a separate corporate entity, according to the survey. This entity would be managed by an independent board and would have the mandate to divest government participation in these CPSE for a period of time.