A day after the Centre formally called off strategic sale of stakes in 13 profit-making PSUs, Finance Minister P Chidambaram on Wednesday said divestment had not been put on the back-burner and indicated that it would be taken up after discussing with Left parties.
On delay in deciding about divesting 10 per cent government stake in BHEL through public offer route, he said: "We have not taken any fresh decision. We are holding discussions with Left parties."
The Divestment Development: Complete Coverage
The minister sought to clear the haze over privatisation policy by indicating that government was open to the public offer route to offload minority stakes in PSUs but was against strategic sale of stakes, which would transfer management control to private hands.
"The decision on (not opting for) strategic sale of profit-making PSUs was taken long ago," he said.
Just after United Progressive Alliance assumed office last year, the government had made it amply clear that the National Common Minimum Programme was against the process of divestment through strategic sale of stakes in PSUs, a route that was actively taken up by the previous National Democratic Alliance.
"The route of strategic sale is not the proper approach," Chidambaram said, adding that he was ready to argue on this with the Opposition party leaders notably former Finance Minister Yashwant Sinha who had challenged UPA's decision.
Chidambaram also stated on Tuesday that the Centre would consider residual stake sale on a case-to-case basis as it has to fulfill sale and purchase agreements and legal obligations contained in the agreements.
The ongoing controversy over divestment flared up after Minister of State for Finance S S Palanimanickam, in a written reply in Rajya Sabha on Tuesday, announced the government's decision to call off strategic sale of stakes in 13 PSUs.
"In keeping with the NCMP guidelines it has been decided to call off the process of divestment through strategic sale of 13 profit-making PSUs," he had stated.
Chidambaram also validated this argument saying strategic sale of stake in PSUs was not the right option, as it was not a "transparent method" and had raised questions.
The companies that have been taken-off the divestment list include National Aluminium Company, Shipping Corporation of India, National Fertilizers, Hindustan Petroleum Corporation, Engineers India, besides Balmer Lawrie, Hindustan Paper Corporation, State Trading Corporation, National Building Construction Corporation, Engineering Projects India Ltd, Sponge Iron India Ltd, Manganese Ore India Ltd and Rashtriya Chemicals and Fertilizers.
