New Delhi: Worried over the fast depleting government coffer, the Centre is eying the profit making Public Sector Undertakings (PSUs) to boost its revenue and improve the financial scenario. The continuous fluctuations in the share market have ended the path for disinvestment and in process has made situation even worse for the Union government.

The Government of India wants to fillip its financial status by selling its stake in PSUs. The Centre being the promoter may ask these companies to pay additional dividends.

However, the PSUs do not find any merit in the entire exercise to meet fiscal deficit. Talking to Dainik Jagran, SCOPE Director General Dr UD Choubey said, “The Government should not use PSUs in meeting fiscal deficit. The fund raised by disinvestment should be spent on the development of PSUs.”

PSUs have heavy amount in their kitties, whereas the Government’s main sources for meeting fiscal deficit have proved a failure during the current fiscal.

Despite positive growth in the tax revenue, the Centre failed to achieve stipulated target for revenue growth. Particularly the pace of indirect tax collection slumped because global meltdown and low demand have marred the industrial production.

The Centre has managed to procure a mere Rs 1,142 crore against the disinvestment target of Rs 40,000 crore.

Now the Centre wants to sell its stake in the profit making companies to avoid disinvestment process through share market.

Sources said the Government has prepared a list of PSUs like Bharat Heavy Electrical Limited, Steel Authority of India Limited, NMDC, and MMTC which are having surplus cash.

There are eight PSUs in the top ten listed companies as far as cash surplus is concerned. Presently, the PSUs contribute 20 percent of its dividends to the Government.

During the meeting with CMDs of the PSUs and Public Undertaking Departments they were directed to expedite the pace of economy.

JPN/Bureau