Disinvestment Commission term extended till November

The government decision follows a communication from the commission informing that its term was coming to an end on August 22 and that it had completed processing of all the 58 PSUs referred to it so far.

The temporary respite to the commission has put the issue of the role and fate of the commission in abeyance, thereby eliminating the possibility of en-masse resignation by the commission members.

Earlier the commission had represented to the government, including Finance Minister Yashwant Sinha and Industry Minister Sikander Bakht, demanding a greater role and supervisory powers for itself in the process of disinvestment.

The commission, which often criticised government for bypassing a number of its recommendations, had sought restoration of its supervisory powers, which were annulled by the previous United Front government.

When contacted commission chairman G V Ramakrishna said that the commission was being given extension till November and was awaiting a formal order.

Disinvestment panel recommends privatisation of BHEL, RINL

NEW DELHI: Disinvestment Commission today asked the government to privatise five public sector undertakings, including Bharat Heavy Electricals Ltd, Rashtriya Ispat Nigam Ltd (RINL).

The commission in its 12th report submitted to the government, suggested sale of 51 per cent government stake in Hindustan Insecticides Ltd and Rashtriya Chemicals and Fertilisers Ltd to strategic buyers and RINL.

The commission headed by G V Ramakrishna also recommended sale of 33 per cent of government’s equity in Hindustan Organic Chemicals Ltd to bring down its holding to 26 per cent.

It suggested induction of financial institutions as strategic partners in BHEL by offering 20 per cent government equity to give the company financial strength to expand its international operations.

Government holds 67.7 per cent stake in BHEL.

With the submission of the 12th report, the commission has completed examination of all 58 PSUs referred to it by the government except for the six cases which are pending with the Board for Industrial and Financial Reconstructution (BIFR).