BT India @ 100: Govt focused on the growth of the PSU market capitalization, not just disinvestment, explains Diapm during
Talk to Bt India @ 100 The event, Arunish Chawla, secretary of the investment and public asset management department (DIPAM), underlined a nuanced development in the government’s divestment strategy – that which is not only focused on the sale of participations, but on the strengthening of public sector companies (PSU) thanks to better market capitalization and governance.
Chawla addressed a change in common perception: from the government’s previous position to “not be in the field of business” to what now appears as an approach more focused on the value of PSU management.
Clarifying the post, he said: “There is no contradiction between the two. The idea is to create a space in the non-strategic sectors for private companies to flourish, while ensuring that the public sector plays a vital role in the supply of public goods and the maintenance of critical supply chains.”
He stressed that government’s economic policy is based on continuity, not steep changes. “Politicians are evolving and the roles of the public and private sectors are complementary, in particular in strategic areas and centered on well-being,” he said.
On the issue of corporate governance – often quoted as an obstacle to the confidence of investors in the listed PSU – Chawla highlighted the main reforms of the selection of managers. “Our government has made the whole process effective, transparent and without interference. Today, PSU leaders are among the best in the world, “he said, adding that their caliber is obvious in the number of people who are now recruited by the best private companies for leadership roles.
