FM urges Left to go easy on Pension Bill

Govt to list profit-making PSUs on domestic bourses

Finance Minister P Chidambaram today asked the Left parties to reconsider their opposition to the Pension Fund Regulatory and Development Authority (PFRDA) Bill so that government can provide a "legal basis" to the new pension system started last year.

"I requested the Left parties to reconsider their opposition to the PFRDA Bill," he told reporters. "I have pointed out the new pension system has already come into force from January 2004. It is now without a legal basis. It is, therefore, important to provide a legal basis," he said.

The minister said he had already spoken to the Left leaders on the Bill, which would enable the government to set up a regulator and allow private players to manage long-term savings. "I am sure they will consider my request. Let us see what happens in the floor of the house," Chidambaram said.

The new pension system was started by the previous NDA government for new recruits in Central services from January 2004. Nine states, Andhra, Tamil Nadu, Rajasthan, Chhattisgarh, Jharkhand, Orissa, Manipur, Himachal and Gujarat, have decided to implement it.

The finance minister had introduced the PFRDA Bill in Parliament on Monday.

Left leaders have opposed the opening up of the pension system to private players and the switch over to a new defined contribution pension regime from the earlier defined benefit pension system.

However, the Centre and some states have decided to opt for the new pension system considering the burgeoning pension bill.

The government has also decided in-principle to list large, profit-making public sector undertakings on the domestic stock exchanges, Chidambaram said. However, no decision had yet been taken on disinvestment in any specific public sector company, he said.

The government also said it would table a white paper on its disinvestment policy in the monsoon session of Parliament.

"The government has decided, in-principle, to list large, profitable PSUs on domestic stock exchanges and to selectively sell a minority stake in listed, profitable PSUs," Chidambaram said.

Companies like Bhel, Power Grid Corp and Power Finance Corp are on the proposed list for disinvestment.

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Pension blues

PC's window to the left

Chidambaram has spoken to the Left on the Pension Bill, which would enable the government to set up a regulator and allow private players to manage long-term savings

Private push needed

At present, the pension constribution of new government employees are accumulated in the consolidated accounts. The proposed pension regulator would enable pension fund managers, who would manage contributions

Growing pain

Both the Centre and states are reeling under the burgeoning pension burden. It has risen seven-fold to Rs 15,367 crore since 1990-91