Parl panel raps govt over disinvestment issue

A Parliamentary panel has expressed concern over government's decision to sell stake in three power companies, despite its announced stance of keeping all proposals and decision relating to disinvestment on hold.

"In spite of the assurance given and reiteration of the committee's recommendation for bringing out a policy document spelling out the disinvestment policy approach, goals and objectives, the government has been unable to come with the same till date," the standing committee on finance said in a report tabled in Parliament recently.

Expressing "anguish", it said despite its stance, the government on February 8 proposed to back the "offer of sale" of 10%, 5% and 5% of shareholding by the Rural Electrification Corporation, Power Grid Corp and National Hydroelectric Power Corporation respectively.

The panel wanted a clear policy on disinvestment. It is of immense national importance in terms of utilising proceeds for funding social welfare projects and capital investment requirement of profitable PSUs was not being enunciated by the government, the report said.

Though a decision was taken on July 6, 2006 to keep all disinvestment decisions on hold, the government has been unable to indicate any time frame for completing the review.

The committee, headed by former union minister Ananth Kumar, asked the government to avoid the apparent ambiguous stance on disinvestment of PSUs and refrain from restoring to adhocism in its policy approach.