The decision by the government to merge public sector firms such as the two oil behemoth, insurance firms and banks, will help Indian firms to take on global competition, said Ved Prakash, Chairman and Managing Director, MMTC, and Chairman, SCOPE.
"Pooling of resources is a good step in a very competitive global environment," he told reporters.
He added that a definite timeline has not been communicated on the merger of STC with MMTC.
In the wake of the over Rs 12,000-crore fraud at Punjab National Bank, Prakash also said that while the government has strengthened corporate governance in PSUs, fraud prevention and risk management have to be a major focus.
"Sometimes it becomes very difficult to stop fraud by an individual or a group," he said, adding that SCOPE is planning a programme on fraud prevention and risk management.