Guj govt hints at selling stake in state units

AHMEDABAD: The Gujarat government has decided to withdraw its equity in different state-level undertakings as a strategic measure to make the state’s economy progressive.
It has, however, not provided any time-frame or the road map for its proposed disinvestment.
The state government, in a press release, stated that it had given the final shape to its disinvestment policy in consonance with the divestment programme of PSUs by the Central government. “The issue was discussed between chief minister Narendra Modi and the Union minister for divestment, Arun Shourie, during the latter’s recent visit to the state,� the release added.
The release further said that the state government has already put in place a cabinet sub-committee headed by the chief minister to consider restructuring or privatisation of state-owned enterprises.
The state would also set up an independent experts’ committee to decide the details of restructuring or privatisation of PSUs, apart from reconstituting the technical secretariat in the finance department.
While the finance department would work as a nodal agency, the programme will be sent to the expert committee for review. The expert committee will later study various aspects and send its recommendations to the Gujarat government. The recommendations will then be put before the cabinet sub-committee through the technical secretariat and the state would implement the decision only after approval by the cabinet sub-committee. The evaluation of the public undertakings will, however, be carried out as per the Centre’s norms.
A part of the funds raised from the privatisation will be used by the finance department for creating a separate fund for use in early debt repayment of loans. The state government’s debt burden is over Rs 50,000 crore. The state has also created a State Renewal Fund to provide benefits to those opting for voluntary retirement and to incorporate necessary amendments in the set of rules for partial or complete closure of state undertakings, the release added.
It must be noted that the Gujarat government recently announced the restructuring of the ailing Gujarat Electricity Board into three separate companies for power generation, transmission and distribution. “Among the companies in line for revamp in the first phase include Gujarat State Road Transport Corporation, Gujarat Maritime Board, Gujarat Industrial Development Corporation, Gujarat Industrial Investment Corporation, Gujarat State Narmada Valley Fertilisers Company,� sources told ET.