STATESMAN NEWS SERVICE
New Delhi, 2 August
In a significant move, the government has approved the creation of a special investment fund for meeting the minimum public shareholding of 10 per cent in six financially sick central public sector enterprises (CPSEs).
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) at a meeting chaired by the Prime Minister Manmohan Singh last night.
The six companies are Kolkata-based Andrew Yule, Fertilisers and Chemicals (Travancore), Hindustan Photo Films, HMT (Hindustan Machine Tools), Bangalore-based ITI (Indian Telephone Industries) and Scooters India.
“Since these companies were not financially sound, it was found difficult to meet the minimum public shareholding by following Sebi approved methods. However, the government was keen to comply with the requirement in all government companies,” an official statement said today.