Moni, I'm not sure which PIC you're using. I'm used to using the USART on the 16F7XX series but I don't think the associated registers differ much. Are you setting TXEN? This is bit 5 in TXSTA register. You could just put a hex value of B0h into TXSTA (to set CSRC and SYNC also). Also your value of 20h for TXREG seems a bit odd. Surely you need 80h in RCSTA.

Hope you get somewhere.

John R