ELECTIONS '98
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We need a separate ministry for disinvestment

A massive debate is on within the Central government over the procedure to be adopted for the disinvestment of public sector undertakings. The major dispute is on the nodal agency that should take charge of the operation. Despite a marathon Cabinet discussion and several meetings at the Prime Minister's Office, the authorities are yet to find a solution.

There are many views. Some ministers want the finance ministry to take on the responsibility. Others are in favour of the industry ministry or the department of public enterprises. Disinvestment Commission Chairman G V Ramakrishna, for his part, is quite keen on the job himself. The finance ministry is against this. Its argument: The Commission is a recommendatory body, and should not be an implementing agency. If something goes wrong tomorrow, then who can be held responsible? Shares of public sector units belong to the government. By all logic, therefore, only the government has the right to disinvest it. How can this work be given to a commission or board, which cannot be accountable to the people? After all, billions of rupees are involved.

After the finance ministry's opposition, it was decided that two groups should be formed to resolve the issue. One was to be headed by the cabinet secretary. The second comprised four cabinet ministers headed by the prime minister. Several meetings of these groups have also taken place. In the last meeting of the second group, it was decided that the government should do it.

But who in the government? That is the question now.

I think it should be decided only after thorough thought. Public money is involved. The disinvestment should take place as soon as possible, without any discrepancy. After economic sanctions and the South Asian market crisis, the share value of public sector undertakings has gone down. If the government wants money, it may have to go to the global market. All this process requires a lot of work and proper handling.

The Samadhan scheme is now expected to bring in good results. Thanks to Revenue Secretary Javed Chaudhary, the department has decided to bring those cases wherein the income tax department has gone for appeals also in the scheme. Still, the deficit is too high and the government must get a good price on PSU shares.

In view of all these, I feel a separate ministry should be created for disinvestment. People of high integrity with positive attitude should be made minister and secretary in this ministry. Instead of a Cabinet minister, a minister of state can be its in-change. In fact, the government has already got a suited department, programme implementation, which does not have much work. The basic job of this office is to get government programmes implemented. So why not convert it into a full-fledged ministry for disinvestment?

Rajiv Shukla