PSUs including NTPC, BHEL, SAIL, ONGC and IOC issuing bonus shares may be given better government appraisal

Cash-rich PSUs like NTPC, BHEL, SAIL, ONGC and IOC which will issue bonus shares, largely accruing to the government, may get a better annual performance appraisal, sources said.

The Department of Public Enterprises (DPE) is working on this proposal which will encourage the top-notch PSUs to reward their shareholders by way of bonus shares.

Since the government holds an overwhelming majority shares in these companies, the benefits will accrue to it.

Under the proposal, the DPE is taking recourse to the old guidelines which stipulate that the PSUs having resources in excess of three times of their paid-up capital should immediately consider issuing bonus shares.

Companies like NTPC, BHEL, SAIL, ONGC and IOC meet the criteria under consideration.

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