Mumbai,DECEMBER 9: Shares of state-owned firms rebounded off lows in 1999, but how high they go depends on how fast the government cuts its stakes. Out of 58 firms referred over a three-year period to the Disinvestment Commission, a privatisation panel, the Government is yet to take a decision on the panel's recommendations regarding 35 firms.Only two of the recommendations have been fully implemented. From oil refineries to telecommunications and metals to the Internet, Government enterprises have straddled India's corporate landscape, enjoying dominant market positions not largely reflected in their financial performance.
Politics and adverse markets have stalled plans to sell off State assets over the past decade. Indian Oil Corp - of which the government owns 82 per cent and fellow state-run Oil & Natural Gas Corp (ONGC) 10 per cent - is the big one everyone is waiting for next.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.