The Hindu : Clear apprehensions about disinvestment: Samata

Online edition of India's National Newspaper
Thursday, Nov 07, 2002

National

National

Clear apprehensions about disinvestment: Samata

By Our Special Correspondent

NEW DELHI NOV. 6. The rumblings from within the ruling coalition over the issue of disinvestment continue to rock the BJP-led NDA Government at the Centre. The Samata Party, one of the crucial partners in the NDA coalition, today cautioned the Government, stressing that disinvestment should not give scope for ``misgivings and apprehension''.

Though not opposing disinvestment and privatisation as such, the party criticised the Government on the ``procedure and speed'' of the process.

``The disinvestment process should not only be completely transparent but also not deviate from its original objectives,'' the party's political resolution adopted at its national council meeting in Rajkot, Gujarat, said.

Releasing the document at a press conference here today, the party spokesman, Shambu Shrivastava, said the process of disinvestment had raised doubts in the minds of the public and demanded a mid-term review of the Government's economic policies.

``Our party has no difference on the policy of disinvestment or privatisation per se, but the procedure and speed has created misgivings and apprehensions among the people, which need to be cleared.''

Mr. Shrivastava cited the case of the Mumbai-based Centaur Hotel sold to Batra Hospitality for Rs. 83 crores in February this year. The hotel was resold to the Sahara group for Rs. 115 crores in just six months' time. ``That such a huge profit has been made in depreciated conditions of the market is bound to raise suspicions,'' he said.

Referring to the sale of the IPCL, the political resolution said it was handed over to the Reliance in a ``strategic sale'', raising important questions. ``The Government's own guideline was not adhered to, by allowing the RIL to bid for the IPCL, since the RIL has been charged with violation of the Official Secrets Act, which is a serious offence and has national security implications. Apart from this, the question has also been raised that this profit-making PSU has been undervalued,'' the resolution said.

The party's national council warned that disinvestment should not result in PSU-monopoly being replaced by private monopoly.

The disinvestment should also not result in strengthening a few corporate houses.

Similarly, the disinvestment proceeds should be used essentially for social sectors such as education, health, employment generation and empowering small-scale sector.

Mr. Shrivastava said the Prime Minister, Atal Behari Vajpayee, should convene a meeting of senior Ministers to discuss the disinvestment issue and re-evaluate the procedure on the basis of arguments forwarded by various quarters.

Asked if his party was demanding action against those responsible for the sale of the Centaur Hotel, he said if any wrong had been done, nothing could be done legally.

Employment generation was the foremost task. With over 4-crore jobless persons registered and more than double that number unregistered, the country was facing an ``extremely serious situation.''

The situation had the potential to further create havoc vis-à-vis the social, economic and political fabric of the country.

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