Govt To Restoredivestment Panel Powers

The proposed structural mechanism for speeding up the disinvestment process is likely to include an `empowered' Disinvestment Commission, and exclude bureaucrats and technocrats of concerned ministries and public sector undertakings.

Finance minister Yashwant Sinha hinted at such a move while speaking at a book release function at India International Centre yesterday.

"We are committed to not only restoring the powers of the Disinvestment Commission, but also to giving it a larger role in the disinvestment process," he said. "But the government's accountability to the Parliament also has to be incorporated in the decision-making process," he added.

The finance minister also suggested that bureaucrats and technocrats of concerned ministries and PSUs will not form part of this larger decision-making body.

"These people treat these PSUs as milch cows, and obviously have a vested interest in delaying the disinvestment process of PSUs under their care," he said, adding, "people likely to put obstacles should not be a part of the decision-making process."

Speaking at the release of the book `Privatisation Experience Around the World' by G Ganesh, member secretary, Disinvestment Commission, he said the disinvestment process had become distorted over the last few years and had to be brought back on an even keel.

Responding to the criticism of the disinvestment process by Disinvestment Commission chairman G V Ramakrishna, who was presiding over the function, Sinha said, "the Commission has been unhappy with the approach of the past governments towards disinvestment because their recommendations went far beyond the policies of those governments. But, the BJP has a clear policy on this issue, as was outlined in my budget speech, which promised 74 per cent disinvestment in non-strategic units, closure of non-revivable PSUs, better VRS package, etc."

"I am, in fact, the father of disinvestment," he said. "The word `disinvestment' was used for the first time in the interim budget I presented as finance minister in 1991-92.

Also, as Ramakrishna pointed out, the phrase `Disinvestment Commission' first appeared in the BJP's manifesto during the last election when the United Front came to power."

Sinha admitted that there had been a delay in policy decision with regard to disinvestment due to "obvious" reasons, but assured the gathering that these decisions will be taken "sooner rather than later".