White paper on PSU sell-off

New Delhi, March 22 | Updated: Mar 23 2005, 05:30am hrs
The government will come out with a comprehensive white paper (status report) on disinvestment in public sector units during the monsoon session of Parliament, minster of state for finance SS Palanimanickam said on Tuesday.

The focus of the disinvesment policy has changed from the earlier one, emphasising strategic sale, to a broad based strategy encompassing the disinvestment of minority shareholding in profitable public sector units, while retaining at least 51% shareholding and full management control with the government, he told Rajya sabha.

The new policy also prescribes restructuring and modernisation of loss making but revivable public sector undertakings, including through the induction of a private investor and closure or sale of chronically sick PSUs, after ensuring that the dues of the employees along with compensation are paid.

The while paper (on disinvestment) is under preparation and will be tabled in Parliament during the forthcoming monsoon session, he said.

RRBs: Mr Palanimanickam said the proposals for amalgamation of three Regional Rural Banks (RRBs) sponsored by Bank of Baroda in Gujarat, three RRBs sponsored by Dena Bank in Gujarat, two RRBs sponsored by Indian Bank in Tamil Nadu, three RRBs sponsored by Central Bank of India in Maharashtra and three RRBs sponsored by Punjab National Bank in Punjab have been approved by the respective state governments and are being further processed.