Divestment in power cos irks MPs panel

NEW DELHI: The standing committee on finance has expressed concern over the government’s decision to sell stake in three power companies despite its public stand of keeping all disinvestment related decisions on hold till the policy on this aspect is clearly defined.

The government had recently cleared divestment of 10% in Rural Electrification Corporation and 5% each in Power Grid Corporation and National Hydroelectric Power Corporation. “In spite of the assurance given and reiteration of the committee’s recommendation for bringing out a policy document spelling out the disinvestment policy’s approach, goals and objectives, the government has been unable to come out with the same till date,” the committee said in a report tabled in Parliament recently.

Headed by former union minister Ananth Kumar, the committee said a clear stand on this issue was of immense national importance in terms of utilising proceeds for funding social welfare projects and capital investment requirement of profitable PSUs was not being enunciated by the government.

It has said that though a decision was taken on July 6, 2006, to keep all disinvestment decisions on hold, the government has not indicated any time frame for completing the review. The committee has asked the government to avoid the apparent ambiguous stance on disinvestment of Public Sector Units and refrain from restoring to adhocism in its policy approach.