The move comes in the wake of allegations that the global agency roped in by the government to see the Balco deal through had "undervalued" the profit-making PSU by not taking into consideration the hidden assets of the company.

The sale of government's stake in Balco for approximately Rs 552 crore to Sterlite Industries has kicked off a huge controversy. The employees of the company are now on indefinite strike resulting in loss of crores of rupees to the firm.

Speaking to The Financial Express, Mr ND Gupta, president, ICAI, said a senior official from the department of divestment had rang up the association and enquired weather the ICAI can take up valuation of the PSUs which the government plans to disinvest.

"We have been approached by the secretary asking weather we are prepared to take up the valuation of public sector units in which the government plans to disinvest. We have expressed our readiness to take up the task," said Mr Gupta.

He said the ICAI with a membership of over 97,000, 100 branches and five regional offices, has the expertise and the infrastructure to do the task in a foolproof manner. "Afterall, the accounting norms for the valuation are prepared by us. Therefore, we do not forsee any problem in performing the task," he added.

Analysts have termed the Centre's decision to rope in the ICAI as a deft move that would prevent its detractors from alleging any shady deals in future divestments. The Institute is a statutory body set up under an Act of Parliament. This gives it the much-needed independence and the credibility, they pointed out. A major point of criticism against the government is the role of global agency which it had appointed for valuation of Balco.

They said much of finance minister Yashwant Sinha's claim to peg the fiscal deficit at the estimated 5.1 per cent of the GDP level hinges on revenues raised from the disinvestment of PSUs.

Mr Sinha, in this year's Budget, hopes to raise Rs 12,000-crore revenue through privatisation of PSUs. The government has lined up nearly 72 PSUs, including Maruti Udyog, Indian Airlines and VSNL for big ticket disinvestment plan. "If the government wants to achieve this goal, it has to silence the Opposition by ensuring a fair and free valuation process. Often the role of private agencies in the process leaves a lot of room for motivated allegations," an analyst here said.