Giving a boost to the capital market, the government on Thursday committed itself to divesting minority stake in public sector units through public offering and the finance ministry is assessing the right timing for state-owned firms to hit Dalal Street.
The United Progressive Alliance government conveyed its intentions to tap the stock market for raising resources through sale of PSU shares while retaining 51 per cent stake in the state-owned firms.
With fiscal deficit ballooning to over 6 per cent of GDP last fiscal, and is expected to remain high this fiscal as well, divestment will provide much needed fund to the government.
"Our fellow citizens have every right to own part of the shares of public sector companies, while the government retains majority shareholding and control," President Pratibha Patil said in her address to the joint session of Parliament.
The President's address, setting the government agenda, said there would be a time-frame for listing of the PSU firms.
"My government will develop a roadmap for listing and people-ownership of public sector undertakings while ensuring that government equity does not fall below 51 per cent," she said.
Two blue-chip PSU firms -- Oil India Ltd and National Hydro-electric Power Corporation -- had already obtained Sebi permission for their IPOs which is valid till September.
"We will watch for the right time. It will not be done before August," a senior finance ministry official said.
The Sensex has gone up by about 80 per cent since March.
