Divestment panel ceases to exist

Minister of public enterprises and heavy industries Manohar Joshi had repeatedly said in the last six weeks that he would consult the Prime Minister Atal Bihari Vajpayee on the resignation and fate of the Disinvestment Commission.

Ramakrishna said that the government had not communicated anything to him or the commission on the resignation which was intended to give the new government a free hand to decide on the commission.

Just before the election the then industry minister Sikander Bakht had extended the commission’s term by three months from August last in a bidto allow the new government to take decision.

Ramakrishna said that government had not responded to his recommendations relating to delinking disinvestment funds from the budget and creation of national shareholding trust for divestment of government equity in blue chips companies at appropriate time.

"The previous United Front government was serious in setting up disinvestment commission. Now it is for the present government to take it seriously," he said and pointed out that BJP was the first political party to have coined the term `disinvestment commission’ in its manifesto way back in 1996.

He parried questions on his meetings with the new minister Manohar Joshi saying "I called on him when he assumed office. It was just a courtesy call from an old chairman of the old commission."

Ramakrishna declined to answer questions that if he would be willing to continue if the government extended the tenure of commission, saying "they have not done so far. I am going out today. But I will not answerhypothetical questions."

Expressing hopes that the present government would attach importance to the divestment panel and its recommendations, he said almost all political parties had mentioned the issue of disinvestment in their manifestos and the commission had succeeded in `sensitising’ Indian policy and the public about the disinvestment and privatisation.

The chairman said the panel had suffered a setback when the caretaker UF government had slashed monitoring powers to render the panel an advisory body in January 1998. No action had been taken since then, he added.

Stating that disinvestment was an important part of economic reforms process, Ramakrishna said the commission had given its recommendations in case of 58 PSUs, including privatisation of 36 companies through strategic sale or disinvestment of majority stake of government in the market.