Sell-off panel firm on saddle: GVR

NEW DELHI, July 21: Contrary to reports appearing in a section of the press, the Disinvestment Commission members are not going to resign...

NEW DELHI, July 21: Contrary to reports appearing in a section of the press, the Disinvestment Commission members are not going to resign. Chairman of The Indian Express that there was no truth in the reports that the members were going to resign. “But such statements are an expression of dissatisfaction of members with the delay in decision making in the Government,” he said. A UNI report quoted Commission member Dr D.M.

Nanjundappa as saying that all members including Ramakrishna would resign after their meeting on July 24. Nanjundappa said, "Even if others do not resign, I am firm in my decision". "My last attendance would be on July 24", he added.

He said he had taken the decision following the utter disregard shown by the BJP-led government in not restoring the powers of the Commission stripped in January this year. Though the Government had been stating that it would consider restoring the powers, nothing had been done so far, he alleged.

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Besides Dr Nanjundappa, the other members of theCommission are Dipankar Basu, former chairman of State Bank of India, Rajendra Singh and Suresh Tendulkar.

Ramakrishna said that Nanjundappa’s statement should be seen in context of the situation prevailing in the Commission. Its recommendations were not considered by the United Front Government and it even withdrew the monitoring powers of the Commission.

He accused the bureaucracy of scuttling the recommendations made by the Commission. “Certain bureaucrats are preventing the new Government from taking positive decision about the Commission.” He quoted the example of the disinvestment in India Tourism Development Corporation (ITDC) for which the Commission had given its recommendation in 1997. But despite this, the Ministry of Tourism has placed an advertisement asking for global advisers to finalise the mode and extent of sell-off in ITDC. The ad which appeared in the July 18 issue of The Economist says the responsibility of the global advisor will be “examination of the various alternatives/optionsfor restructuring of /disivestment in/ privatisation of ITDC” and to execute it after approval from the Government of India. SBI Capital Market Services is assisting the Government in identifying the global adviser.

This was duplication of effort as detailed recommendations had been submitted to the Government in 1997 on the level of disinvestment in ITDC and its group hotels, Ramakrishna said. He added that the current Government was not told about this advertisement and it was placed on the basis of the decision taken by the previous Government. The global advisers were originally expected to only advise on the international sale of PSU shares, but not for studying the mode and extent of sale. Government officials say that the different departments have been asked to send in names of PSUs for disinvestment so that they may be referred to the Commission.