Govt firm on protecting national security while selling off A-I

New Delhi, Aug 24: THE Central government on Friday assured that there would be no compromise on security in the strategic sale of Air-India (A-I) and the disinvestment process in public enterprises would be “as transparent as possible.”

Replying to a calling attention motion on disinvestmentin the Rajya Sabha, disinvestment minister Arun Shourie said that he would take up with finance ministry, the Congress proposal for setting up National equity fund from the disinvestment proceeds for improving the health of PSUs.

Earlier the main opposition Congress had come down heavily on the government in the Rajya Sabha for mismanagement of the economy and damanded setting up of a National equity fund from disinvestment proceeds for restoring the health of public sector undertakings.

Initiating the discussion on a calling attention motionon disinvestment, leader of the opposition Manmohan Singh said that the National equity fund be created to ensure that disinvestment proceeds were not misused for filling the budgetary gaps.

Making a frontal attack on the government for its mis-handling of the economy, the former finance minister said that the very fact that there were few takers for strategic sale of certain key public sector units showed how the economy was being mismanaged.

Asserting that Congress was not against disinvestment per se and recognised that disinvestment had a role in the growth of the economy, he said that what was objectionable was the manner in which it was being carried out by the nda government.

“There is lack of clarity and trasparency in the disinvestment process,” he added.

Criticising the government for setting up unrealistic disinvestment target in the budget, Mr Singh said that a target of Rs 10,000 crore was set for last year but it could achieve less than Rs 2,000 crore.
This year’s Budget had set still more ambitious target, he said, expressing doubt over its realisation.

Mr Singh said that if the market value of the companies had come down, it was mainly because of the “confused thinking” and lack of consistent approach of the government with regard to its policies.

The policy of disinvestment should not be taken in isolation but should be seen as an integrated part of restructuring of public sector units, he said, adding the government should spell out clearly the reasons for selling even the profit making public sector units.

Stating that the party had no objection in utilising the proceeds of disinvetment for development and social services like education, Mr Singh said the government was changing the character of public sector by divesting some of the profit making psus. “We have not understood the logic of the government,” he said.

The former finance minister also wanted to know what was the government’s policy with regard to the utilisation of the cash reserves of PSUs.

He said that the Centre had followed the route of strategic sale of some of the PSUs but there were other ways also to achieve the objective.

Wanting to know what percentge of equity was going to be divested, Mr Singh said that the government should take the country into confidence before entering into negotiations with potential bidders.

Mr Singh added that if the market value of the companies had come down, it was mainly because of the “confused thinking” and lack of consistent approach of the government with regard to its policies.
The policy of disinvestment should not be taken in isolation but should be seen as an integrated part of restructuring of public sector units, he said, adding the government should spell out
clearly the reasons for selling even the profit making public sector units.

Stating that the party had no objection in utilising theproceeds of disinvetment for development and social services like education, Mr Singh said the government was changing the character of public sector by divesting some of the profit making PSUs.

(PTI)