Global advisors for disinvestment in 10 PSEs

By Our Special Correspondent

NEW DELHI, JUNE 28. The Disinvestment Minister, Mr. Arun Jaitley, today said the Government had appointed global advisors for disinvestment in ten public sector enterprises (PSEs), and taken an ``in principle'' decision for such advisors in seven PSEs. Part of the equity of all these 17 companies will be divested in the current fiscal year itself.

Inaugurating a seminar on `Disinvestment strategies and restructuring options', organised by the Associated Chambers of Commerce and Industry of India (Assocham) in association with the PHD Chamber of Commerce and Industry, Mr. Jaitley said the Government would also take up the sale of equity in some profit making PSEs to create `success stories' for giving a fillip to the disinvestment programme.

He said the Government was committed to expeditious implementation of the decision while protecting employees' interests and ensuring that the proceeds from divested units were used to restructure PSEs, increase social sector spending and retire public debt.

He said the Government would ensure complete transparency in pushing through the programme which would be determined by market forces after valuation of the share prices on the basis of best practices.

Besides, he assured that the Government was committed to protect workers' interests. It would attempt to save jobs of employees while disinvesting in public sector units.

Mr. Jaitley said to widen the shareholding pattern in PSEs, the Government was working on an employee stock option (ESOP) scheme which would allow employees to get a share of the wealth they created. The Government wanted professional management to come into PSEs and was equally committed to protect workers' interests, he said.

Mr. Jaitley said the Government would also ensure that an attractive voluntary retirement scheme (VRS) was offered to employees in cases where labour had to be retrenched. He said experience in other countries showed that in the long-term privatisation generated more employment and this would also be the case in India.

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