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Public sector firms add Rs 89,458 crore to India’s wealth

Mumbai, Sep 22 () : In one stroke with reforms notified the Union Government has gained a whopping Rs 89,458 crore from the rise in public sector owned stock.

For quite some time, UPA 2 has been plagued with reports of losses to the exchequer. Business Standard Research Bureau conducted a study of public sector owned companies listed in BSE. It showed that 7.97% gain for 47 public sector owned companies after the fall on Sept 5.

Public sector banks added Rs 37,525 crore showing a 20% increase with SBI adding Rs15,720 crore and Canara Bank shares shooting up with 35% gain.

Public sector firms SAIL, NMDC and BHEL along with nine firms which are listed for divestment added Rs 19,978 crore to the government’s account books. A 21% gain for SAIL followed by NMDC and BHEL lead the rally. The only public sector company that lost on the reforms was OIL India which lost Rs 290 cr, a loss of 1.30 % . Adding to the list of public sector firms in the range of 1.5% to 2.5% were Hindustan Petroleum and Powergrid.

ONGC and Coal India were among the top contributors to Government gains. General Anti-avoidance Rules on hold, hike in diesel/LPG prices to cut down import bill and foreign direct investment in retail and aviation have sent investors to invest money pumped by US Federal Reserve and European Central Bank.

In the power and mining sector the land acquisition issues if addressed will lead to more investments and foreign investors would follow feel analysts.

At a conference in Delhi, Prime Minister said India’s corporate laws should match up to international standards and so should regulation of stock exchanges. He said the parliament, judiciary and executive would be taken into confidence on these laws and added that though at times it looked that they were at loggerheads these institutions have stood the test of time.