‘Guard divestment against monopoly’

His party officials also agreed that their main contention was to block any one firm from gaining monopoly over a strategic sector such as oil.

However, Fernandes said his position paper to the PM would incorporate the recommendations of the Disinvestment Commission which had opposed the privatisation of oil firms. ‘‘My views are rooted in the reports of the Disinvestment Commission,’’ he told a press conference. The commission had recommended that the equity holding in oil sector firms be broadbased with some share offering to the public, transfer of some to a national shareholding trust and a majority with the government.

When asked if he was agreed to Kelkar formula which bars any monopolistic attempts, Fernandes said he was examining all such proposals. Vijay Kelkar, Advisor to the Finance Minister, met Fernandes last month and suggested a level-playing oil sector with government-owned IOC, private sector Reliance, public-held BPCL and foreign-owned HPCL as the marketing firms.

Fernandes maintained that he was seeking a mid-term review of the share sale in public sector undertakings so that a course correction, if required, could be undertaken. ‘‘Not that it (disinvestment) is wrong but it should be assessed whether it has been beneficial or a loss, good or bad for the nation,’’ he said.

He expressed surprise over the Congress move to seek a debate on the disinvestment issue in the lower house. ‘‘Like the Congress, we are also opposed to the sale of profit-making PSUs,’’ he added.

Fernandes said that it was still early for the government to decide as the three-month period was not over. He said that he was not aware of any preliminary meeting between him, Prime Minister Vajpayee and Dy PM L.K. Advani next Tuesday.