a bad idea to transfer government risks to public sector financial institutions. It may be recalled that even blue chip companies of the government were sold in earlier disinvestments in the 1990s at ratios of 5 to 7.
However, it is welcome that the process has started, and the government has not succumbed to price manipulation in the market by cancelling the deal midway, and that the government has got a high price. Hopefully, now, in the interest of buyers, the government would exert pressure on the PSU to improve its performance in order to ensure that the public sector institutions that have bought shares do not suffer, and that the future share prices are high based on improved performance by the PSU.
The author is former disinvestment secretary, power, and chairman, Trai