DISINVESTMENT OF PSUs

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LOK SABHA

Disinvestment of various Public Sector Undertakings (PSUs) has not been put on hold. This information was given by the Minister for Disinvestment, Communications and Information Technology, Shri Arun Shourie in a written reply to a question by Shri T.M. Selvaganapathi and Shri Vinay Kumar Sorake in the Lok Sabha today. He said that because of the situation arising out of local opposition that disrupted due diligence in the case of NALCO, disinvestment is not being pursued at present. As per the policy of the Government, all non-strategic PSUs are to be disinvested irrespective of whether they are profit-making or loss incurring, except in the case of Indian Oil Company (IOC), Oil and Natural Gas Company (ONGC) and Gas Authority of India Ltd. (GAIL), where the Government’s holding will not be reduced below 51%. Oil India Ltd. (OIL) is also not to be disinvested.

Stating further, the Minister said that there is only one case, namely, that of NALCO in which the decision to disinvest was taken by Government but implementation of that decision is not being pursued at present. The policy of the Government on disinvestment is clear and unambiguous. There are 45 PSUs in which disinvestment decision is being implemented while in two other cases, though disinvestment processes have been completed, the transactions are awaiting decisions from the Supreme Court and BIFR.