Govt will disinvest to meet social and infra demands

Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday said the government should disinvest as aggressively as possible to moblise funds for development in critical areas such as health, education and infrastructure.

Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday said the government should disinvest as aggressively as possible to moblise funds for development in critical areas such as health, education and infrastructure.

HT Image

"We are taking a string of individual decisions to disinvest and I think market conditions are good. So, disinvestment will take place," he told reporters on disinvestment of government's stake in public sector units.

In the view of the Plannning Commission and the government, he said, the policy has been that the government would not go below 51 per cent in terms of its stake in the state-owned companies.

"Subject to that policy, we should use disinvestment as aggressively as possible in order to maintain a larger plan size," he said, adding there were many demands for investment in the areas of health, education and infrastructure.

"I personally feel that we should use the fullest flexibilities that we have. As long as 51 per cent is in government hands, nobody should be worried about that," he said.

In its second stint, the UPA Government has so far gone for disinvestment in NHPC and Oil India through public issues. However, the roadmap for disinvestment in other PSUs has not been decided yet.