Public power companies offloading shares?

AFTER a hiatus of nine years, the government has formed a panel to review ways certain state-owned power companies may off-load shares in the country's bourses. By what has been reported, this panel will furnish its recommendations in 30 working days on the best way forward. It is high time wholly government-owned power companies that have been cash-strapped for years on end raise requisite capital from the stock markets instead of waiting for handouts from the exchequer. The raised capital would pave the way for such companies to take on various power projects that would only aid in alleviating the power crunch the country experiences on a regular basis.

Besides the obvious raising of much needed capital, a public offering would make these companies much more accountable. In the event ordinary shares were offered to the public, the management would be liable to answer shareholders' queries in their annual general meetings. It would have a profound impact in the manner in which government-owned entities are run. Transparency and accountability are two essential elements in good governance and even if the public offering is a minority one, it would let the general public have some say about the way state-owned enterprises are run.

It is interesting to note that originally 26 state-owned companies had been selected for the disinvestment by the State back in 2010. Presently, only two companies are being thought of. Regardless, every little bit helps and we welcome the initiative.