labels: industry - general
PSU divestments on hold, says Chidambaram news
13 December 2006

Mumbai: The government is unlikely to divest its stake in any of the profitable public sector units in the near future, finance minister P Chidambaram said.

"Some months ago, the prime minister put disinvestment on hold pending more consultations. I do not expect any money to flow into the National Investment Fund (NIF) in the immediate future," he told the Rajya Sabha during question hour.

The government had, in November lat year, constituted the NIF for channeling proceeds from disinvestment of equity in central public sector units. "Till date, no funds have accrued to NIF," he said.

Of the proceeds accrued to NIF, 75 per cent were to be used on education, health and employment schemes while the remaining 25 per cent were to be used for reviving loss-making PSUs.

"Since there was no consensus (on divesting profit making PSUs), the prime minister had put the process on hold," he said, adding the government would wait for building consensus on divesting small portions of equity in profit making PSUs.

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PSU divestments on hold, says Chidambaram