Divestment program may hit a roadblock
New Delhi: The disinvestment program of the Government may have hit a roadblock with the Cabinet Committee on Disinvestment (CCD) unable to reach a consensus on the modalities for disinvestment of Government equity in the public sector units taken up at its meeting on Saturday. As a result, the Department of Disinvestment is to hold fresh discussions with the respective Ministries.

Today’s meeting of the Committee had about eight proposals for consideration, which included Air India, Pawan Hans Helicopters Ltd, Indian Oil Corporation, Kudremukh Iron Ore Company Ltd and National Mineral Development Corporation. It is understood that the decision to rework the modalities of disinvestment in the PSUs was taken after disagreements emerged between the Minister for Civil Aviation, Mr. Sharad Yadav, and the Finance Minister, Mr. Yashwant Sinha, on how much equity the Government should shed in Air India (AI) and Pawan Hans Helicopter Ltd.

However, in an attempt to assure the industry at large, the Minister for Information Technology and Parliamentary Affairs, Mr. Pramod Mahajan, was quick to say, at a press conference, that there were no differences among the various constituents of the Government on continuing with the policy of disinvestment. Maintaining that the Government was committed to the disinvestment process, Mr. Mahajan said that it looked at it as a way of making the PSUs stronger.
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The IRDA has been notified
New Delhi: The Government has notified the constitution of the Insurance Regulatory Development Authority (IRDA) to hasten the opening up of the insurance sector to private domestic and foreign investors.

The notification, to be placed before both Houses of Parliament on Monday, states that Mr. N. Rangachary will continue to be the IRDA Chairman, while Mr. Haris Ansari and Mr. H. O. Sonig have been appointed as whole-time members. The remaining three members, other full-time members, and four part-time members are to be appointed by the end of the month.

Mr. Rangachary's term would be till June 2003. With the notification of the IRDA, the rules and regulations for opening up of the insurance sector are finally in place and the first private insurance company with foreign participation is expected to be set up by October.
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