Disinvestment Min to dilute norms for natural asset firms

NEW DELHI: Having faced resistance from various quarters over guidelines for natural asset companies, Disinvestment Ministry proposes to dilute some of the contentious provisions under a new set of rules likely to be circulated later this week.
The decision to waterdown some of the norms follows objections and clarifications raised by various stakeholders against the draft guidelines, sources associated with the process said.
Under the new draft the ministry proposes to put in place stiffer norms for natural asset companies vis-a-vis other PSUs slated for privatisation.
New provisions would be circumscribed by the fact that ministry would attempt to incorporate these clauses on a best of effort basis as opposed to earlier proposal to strictly implement the same.
The ministry had earlier proposed to strengthen paperwork for such companies in matters pertaining to mining leases and licenses.
However, the move ran into some problems with the concerned ministries pointing to the fact that these matters fell within the jurisdiction of the state governments and it would unfair on the part of centre to prescribe conditions which only states could impose.
Disinvestment Minister Arun Shourie had announced last winter that his department would finalise guidelines for natural asset companies as part of efforts to kick start the disinvestment programme.
This was followed by set of draft guidelines which were held up by secretary’s panel after it sought clarifications on the matter.
The measures would however apply largely to PSU engaged in extraction of natural resources like mineral deposits.
The new draft guidelines proposed would also have to be approved by the same panel before obtaining cabinet clearance.
Sources also pointed out that the new measures would not interfere with powers of recently constituted National Competition Commission set up to address issue relating to abuse of monopoly power.