No privatisation of strong PSUs, says Manmohan

By Our Economy Bureau | 22 May 2004

New Delhi: Prime minister-designate Manmohan Singh, on said that the United Progressive Alliance (UPA) government would not privatise strong public sector companies (PSUs) and that the government holding in public sector banks would not be allowed to fall below 51 per cent.

"PSUs such as Gail and ONGC will remain in the public sector. There is no intention to privatise them. Similarly, there are nationalised banks that will remain in the public sector. These will not be privatised," Singh said in his first press conference after being chosen as prime minister designate

He, however, added that PSU banks would not be barred from raising capital through the public offer route provided government equity remains above 51 per cent.

"We are not pursuing privatisation as part of our ideological commitment. India needs a strong private sector as also a public sector," Singh said. He said the privatisation route would be resorted to only in cases where the PSUs are not able to "compete on an equal footing with the private sector or become a drag on the exchequer."

Singh said that the common minimum programme (CMP) of his Government would be growth-oriented and progressive and would create an investment-friendly environment.

"The aim of reforms would be to remove poverty and increase employment through relief to decentralised sectors," he said. Assuring that the interests of workers would be protected, he said his government would ensure against job losses.

The prime minister-designate said that the main stress of reforms would be on providing education and health for all, improving environment, housing for millions of slum dwellers and increasing agriculture production.