Divestment Panel Unlikely To Get Statutory Power
The group of ministers looking into the demand of the Disinvestment Commission to restore its original powers is unlikely to decide in favour of giving it statutory powers.
Sources said the group of ministers would take a final view "soon on the status of the Disinvestment Commission", probably before August 24 when the commission is slated to meet.
Disinvestment Commission chairman G V Ramakrishna told Business Standard recently that the panel had sought clarifications on the classification of PSUs and action taken on pending demands when the latest batch of three PSUs were referred to the commission.
Also Read
"Although the group of ministers is unlikely to restore full powers of the commission and give it statutory powers, a via media will be taken to assuage hurt feelings of the Disinvestment Commission," an official said, pointing out the commission may be vested with powers to monitor the divestment process. During its last days, the United Front government had stripped the commission of its powers to monitor the divestment process.
The parliamentary standing committee on industry, in a recent report last month, pointed out that there had been considerable laxity in implementing reports of the Disinvestment Commission, leading to a situation "where practically very little has been achieved".
Officials explained that the Disinvestment Commission's wings were clipped because it "had not exercised its full powers as envisaged during its setting up. And then the UF government went ahead and stripped the panel of its monitoring powers".
The BJP-led coalition government has targeted mopping up Rs 5,000 crore through divestment in 1998-99.
Meanwhile, the industry ministry has sent reminders to government departments to refer to it names of PSUs that can be referred to the commission. According to the industry ministry letter, the deadline was July 31 and not many departments have reverted back with their suggestions.
Sources said the committee of secretaries would look into the suggestions before the PSUs are referred to the Disinvestment Commission. "The committee of secretaries is likely to meet in the next 10 days to discuss the matter," an official added.