Hold on disinvestment not to affect reforms: Plan Panel

NEW DELHI: The decision to put on hold all disinvestment proposals would not affect the economic reforms though it may lead to some reduction of funds for the social sector, the Planning Commission said on Friday.

"Disinvestment is only one item in the multi-item reform agenda... We have to do many things faster... even if disinvestment is put on hold for a while it would not reduce significantly the pace of reforms," Deputy Chairman of the Planning Commission Montek Singh Ahluwalia told the agency.

Stating that the government would have to push forward the reform agenda as enlisted in the mid-term appraisal of the Tenth Plan and Approach Paper for the Eleventh Plan, Ahluwalia said that the decision could lead to little less funds for the social sector.

"But the funds could be found from other sources," he added.

Asked if the decision, announced by Prime Minister Manmohan Singh yesterday in the face of the demand from UPA coalition partner DMK, could have an adverse effect on the reforms of the government, he said, "I am sure there would be discussions on it and a consensus would be evolved."

"Quite frankly, I do not think that the PM's statement (putting all disinvestment decisions on hold) would prevent moving on wide ranging of things which are absolutely crucial," he said.

Ahluwalia said the Approach Paper to the Eleventh Plan talks of a whole lot of reforms in agriculture like greater public investment, new ways of organisation, changing laws and greater role of the market.