BUSINESS

Sonia's letter to PM on divestment

By A Correspondent in New Delhi
September 20, 2004 20:17 IST

Sonia Gandhi, Chairperson of the ruling United Progressive Alliance, has in a letter to Prime Minister Manmohan Singh reminded him about what the government's Common Minimum Programme has to say on the issue of divestment of public sector units.

The UPA chairperson has hoped that the prime minister will take into account the pledge to devolve full managerial and commercial autonomy before any decision is on the constitution of the Board for Reconstruction of Public Sector Enterprises.

The letter is reproduced below:

Sonia Gandhi
Chairperson
National Advisory Council
September 16, 2004

Dear Prime Minister,

I have been informed that the government is considering the reconstitution of the Divestment Commission and setting up, in its place, a new Board for Reconstruction of Public Sector Enterprises.

In this regard, I would like to draw your attention to the following commitment made in the National Common Minimum Programme:

"The UPA is pledged to devolve full managerial and commercial autonomy to successful, profit-making companies operating in a competitive environment."

In this regard, I would like to suggest that the first item in the terms of reference of the new board should be such as to enable it to look into ways and means for strengthening public sector enterprises, in general, and making them more autonomous and professional.

The functioning of the board should not be limited only to restructuring or advising on the closure or sale of public sector enterprises that are referred to it by the government.

I hope this matter will be considered on priority and a clear decision taken before the constitution of the Board for Reconstruction of Public Sector Enterprises.

With regards,
Yours sincerely,

Sonia Gandhi

A Correspondent in New Delhi

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