Government of IndiaMinistry of Finance Budget 97-98




Budget Speech - PART A

Public Sector Autonomy

  1. The CMP promised that "the United Front government will identify public sector companies that have comparative advantages and will support them in their drive to become global giants." To begin with, nine well-performing public sector enterprises, the Navaratnas, have been identified. These are IOC, ONGC, HPCL, BPCL, IPCL, VSNL, BHEL, SAIL and NTPC. The Industry Minister will shortly unveil a package of measures that will help them achieve this objective. He will also make a full statement on managerial and commercial autonomy to all PSUs.

  2. In the meanwhile, government has decided to delegate more monetary powers to the Boards of profit-making enterprises. For these PSUs, the existing limits for capital expenditure that can be incurred without the prior approval of the government is being doubled straight-away, and where the gross block is over Rs.500 crore, the limit will be Rs.100 crore.

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