SCOPE seeks creation of separate restructuring commission

quot;This has given negative signals and hence created a lot of controversy thus affecting not only the process itself but also the image of the government and public enterprises concerned,quot; it said.

SCOPE said instead of setting a specific target for disinvestment, attempts should be made for specific objectives of disinvestment to help increase efficiency and profitability of PSEs.

The apex body of public sector undertakings pointed out that SCOPE of the restructuring fund should be enlarged to cover all necessary budgetary needs of PSEs and 50 per cent of the proceeds of disinvestment should be placed in this fund.

quot;The proceeds from sale of assets of PSEs should also be placed in this fund and the money for voluntary retirement scheme VRS should be kept in this fund,quot; it said adding the fund would meet all necessary funding needs of PSEs.

Their dependence on government budget should go down to zero in three years time, SCOPE added. It said the sick PSEs should be taken out of the purview of Board for Industrial Finance and Reconstruction BIFR and should be handled by the proposed restructuring commission.

quot;Government shares of the PSEs should be placed with stock holding body like a National Shareholding Trust NST which would look after government8217;s interest as shareholder and exercise all ownership rights,quot; SCOPE said.

Stating that the concept of administrative ministries should cease to exist, it said the boards of companies should have full freedom of operation but be accountable for results.

quot;Till a NST is created, all those PSEs where substantial disinvestment is envisaged should be transferred to the newly created Department of Disinvestment to avoid problems of dual control and duplication of efforts,quot; it said adding government shareholding in non-strategic PSEs should be brought down to 24 per cent in a phased manner so that government realises the enhanced value of the shares.