Several state governments are in touch with the central
government to adopt disinvestment procedures, albeit under
a veil of secrecy, Union Minister for Communication, Disinvestment
and IT Arun Shourie said here.
as there has been disagreement on the disinvestment issue
from various quarters, states like Punjab, Madhya Pradesh,
Chhattisgarh, West Bengal, Tamil Nadu and Karnataka have
started implementing the disinvestment process to improve
the lot of state public sector units (PSUs), he said.
on Relevance of Disinvestment at a function
organised jointly by the Cochin Stock Exchange (CSE) and
the Rajagiri School of Management, he said states have
been standing guarantee for bankrupt PSUs to raise loans.
The total value of such guarantees may run to Rs
1.40 lakh crore.
governments are slowly realising the need for disinvestment,
to unleash the productive potential of these organisations,
he added. There is no point in losing money to keep
these units under artificial respiration.
India has to progress, Shourie said, it has to break from
the political stalemate gripping the country. This
can be done by improving public discourse by restricting
it to more facts and less allegations. The endless debates
should be stopped and it is high time that implementation
the world moves at a rapid pace with a product going out
of market in 18 months and a technology in 32 months,
India should liberate itself from established strengths
and focus on developing new initiatives, he said. In
the UK, the export proceeds from rock music are higher
than that from steel. In this connection, I compliment
Kerala for the successful initiative of marketing tourism
with traditional healthcare.
has to get more resources from private enterprises to
free government expenditure, he added. This, in
turn, can create more jobs instead of cutting down work.
To substantiate his point, he said when Reliance implements
its expansion plan in Indian Petrochemicals Corporation
it will create more employment opportunities.
that disinvestment will benefit small investors as well
as employees of that company, Shourie said when Hindustan
Petroleum Corporation (HPCL) will be sold to a strategic
partner, 5 per cent of the equity will be reserved to
employees at one-third the market price.
the prices pick up after acquisition, they will gain,
he said. There will also be a 20-per cent open offer
that could attract small investors. If HPCL employees
push down the price of shares by going on a strike, they
are spoiling their own prospects.
chairman Justice K John Mathew and Rajagiri School of
Management director Fr Jose Alex also spoke on the occasion.