PM puts divestment on hold | india | Hindustan Times
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PM puts divestment on hold

The move is prompted by DMK chief Karunanidhi's threat to pull out of UPA over its decision to disinvest in Neyveli.

india Updated: Jul 08, 2006 18:53 IST

In a move that may spell further setback to the disinvestment process, Prime Minister Manmohan Singh on Thursday put on hold all divestment decisions and proposals, including sale of shares in NALCO and NLC, after crucial ally DMK threatened to withdraw support to the UPA Government on Neyveli shares.

"There have been representations from some of the constituents and allies of the UPA about the process of disinvestment in some public sector enterprises.

"Taking into account their concerns, the Prime Minister has decided to keep all disinvestment decisions and proposals on hold pending further review," PM's Media Adviser Sanjaya Baru said in a statement, shortly after DMK chief and Tamil Nadu Chief Minister M Karunanidhi said in Chennai that his party was reconsidering its continuance in the Centre.

This is the second major disinvestment decision that has been put on hold by the Government. Last year under severe criticism and threats by the Left parties, the Government kept on hold its decision to divest 10 per cent of shares in public sector BHEL.

The Left parties, which provide critical support of over 60 MPs to the Government, had strongly opposed the two divestment decisions. The Left parties have welcomed the Prime Minister's decision. They said there was no threat to the Government.