State-level divestments urged

After the government’s emphasis on disinvestment of central public sector enterprises (CPSEs), the focus could shift to states. The 13th Finance Commission has underlined the need for state governments to chalk out a roadmap for disinvestment of public sector undertakings (PSUs) and closure of non-working companies by March 2011. The commission has said that all states need to “actively pursue” disinvestments and privatisation.

After the government’s emphasis on disinvestment of central public sector enterprises (CPSEs), the focus could shift to states. The 13th Finance Commission has underlined the need for state governments to chalk out a roadmap for disinvestment of public sector undertakings (PSUs) and closure of non-working companies by March 2011. The commission has said that all states need to “actively pursue” disinvestments and privatisation.

HT Image

It has also advised setting up a task force to design a strategy for disinvestments. A standing committee on restructuring should also be set up to ensure that the task force’s recommendations are implemented.

“An independent technical secretariat may be set up to advise the finance departments in states on restructuring/disinvestment proposals,” it said.

Besides, the report also said that all states should endeavour to ensure clearance of back log of accounts of all PSUs.

Under the Centre’s disinvestment plan, funds accrued from sale of government stake in PSUs could be directly deployed for social schemes.