Parliamentary panel raps govt over disinvestment issue | business | Hindustan Times
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Parliamentary panel raps govt over disinvestment issue

business Updated: Apr 30, 2007 06:20 IST

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A Parliamentary panel has expressed concern over government's decision to sell stake in three power companies despite its announced stance of keeping all proposals and decision relating to disinvestment on hold.

"In spite of the assurance given and reiteration of the Committee's recommendation for bringing out a policy document spelling out the disinvestment policy approach, goals and objectives, the government has been unable to come with the same till date," the Standing Committee on Finance said in a report tabled in Parliament recently.

Expressing "anguish", it said despite the decision to keep on hold all proposals relating to divestment, the government on February 8 proposed to back the "Offer of Sale" of 10 per cent, 5 per cent and 5 per cent of shareholding by the Rural Electrification Corporation, Power Grid Corp and National Hydroelectric Power Corporation respectively.

The panel wanted a clear policy on disinvestment. It was of immense national importance in terms of utilising proceeds for funding social welfare projects and capital investment requirement of profitable PSUs was not being enunciated by the government, the report said.

It also said, though a decision was taken on July 6, 2006 to keep all disinvestment decisions on hold, the government is unable to indicate any time frame for completing the review.

The committee, headed by former union minister Ananth Kumar, asked the government to avoid the apparent ambiguous stance on disinvestment of PSUs and refrain from restoring to adhocism in its policy approach.

The government should come out with a comprehensive policy document in this regard, it said.