Ratnas may be allowed to raise funds from markets
The Group of Ministers constituted to give recommendations on empowerment of PSUs have recommended that Navratnas and Miniratnas should be allowed to raise funds from the markets by issuing fresh securities so that the holding of Government does not fall below 51 percent. The recommendations made by the Group of Ministers will be placed before the cabinet for its final approval. This will help PSUs to bid for new and ambitious projects, which may be backed by more financial resources. PSUs like NTPC, Power Grid Corporation of India, Power Finance Corporation, etc are likely to benefit from the decision.
Once the decision is taken, the market will be flooded by a number of PSU IPOs and FPOs. This will not amount to disinvestment as disinvestment means selling of Government Shares to Public or private parties, here the companies are allowed to increase their equity and the Government will not sell its shares.