Speaking at the Editors' Conference here on Wednesday, he said thatdisinvestment was an expedient that would be accompanied by reinvestment forredesign and revamping of the economy.

What proportion of the proceeds should go for restructuring was yet to bedecided. "The disinvestment proceeds will go to create fresh assets insectors with which government should concern itself most," Joshi said.He said that there was no proposal regarding the government selling off itsstake in Maruti Udyod Ltd.

The government has no plans to start any industry in the public sector, hesaid, adding that it was better to concentrate on the existing industriesinstead of starting new ones.

The government would take the decision on the Disinvestment Commission inthe next four days, he said. Commission chairman GV Ramakrishna hadsubmitted his resignation some time back on which, no decision has beentaken by the govt so far.

The minister said that the government was committed to reform andrestructure PSUs. The strategy will comprise "a judicious mix ofstrengthening strategic units, privatising non-strategic ones throughgradual disinvestment or strategic sale, and devising viable rehabilitationstrategies for weak units."

Efforts in this direction would include revival through BIFR, financialrestructuring, joint venture formation, manpower rationalisation,strengthening of boards and managements, and mergers, contractions anddiversifications, Joshi said. Responding to a query about BIFR, he said thatthough there was no proposal to restructure it, necessary improvements wouldbe made.

The creation of his new ministry has given a renewed focus to thedevelopment of capital goods and engineering sectors, Joshi said. "Myministry will have intensive interactions with industry councils and evolveplans for growth of various segments of industry at optimal rates and assistthem through input support, resolution of problems relating to taxes,duties, imports, tie-ups with foreign companies and upgradation oftechnology and research and development," he added.

He said the domestic capital goods industry is "beset with problems whichblunt its competitive edge vis-a-vis foreign manufacturers." These problemsinclude infrastructural bottlenecks, high cost of finance, anomalies inexcise and customs and countervailing duties, dumping and sickness. Joshisaid the capital goods industry would be rebuilt in the public and privatesectors.

"In order to have a robust and competitive machine building industry, it maybe necessary to forge strategic alliances within the country and outside it.It could be that the manufacturing is dispersed on a global mode,comparative advantages being assessed at modular level," the minister said.On the automotive sector, "a prime mover in for industry and economy ingeneral." The first signs of economic revival appeared through the upswingin growth in the auto sector, he said.

"Spurred by the experience of global majors in the Indian automotive sector,I hope majors in other industrial sectors will also take to India in likemeasure," Joshi said.

The government will support efforts in industry for eco-friendlytechnologies, he said.

So far, disinvestment in 39 PSUs in 14 tranches has brought Rs 12,000 crore.The need for competition, fair play and strategic considerations may dictateretention of majority holding by government in some enterprises, he said.

The considerations governing disinvestment should be for a strongerorganisation, constant induction and upgradation of technologies, genuineforeign investment, end of monopolies, enhancement of indigenoustechnological capabilities, augmentation of investment in R&D andtransparency.