Shourie defends corporates for stake in PSUs

NEW DELHI: Disinvestment Minister Arun Shourie on Friday virtually came to the defence of corporate houses wondering as to why Official Secrets Act condition be applied to bidders for government stake in PSUs at a time when Parliament is considering Freedom of Information Bill.

Asked about the recommendations of the Parliamentary Standing Committee on disqualifying corporates which have committed offences under the Act from bidding for stake in PSUs, Shourie said, "The Act is of 1923... everybody is talking about scrapping or modifying the Act."

"At the same time we are being told that it should be applied to the corporate houses," Shourie said adding that this was being done at a time when Parliament was considering a bill on freedom of information."

Stating that he would respond to the Standing Committee on the recommendations made on disqualification criteria if asked in the Parliament, Shourie said that as a journalist he felt that the committee had made "a very sweeping recommendation".

The Committee headed by N Janardhana Reddy had questioned government on participation of Reliance in the privatisation process and wanted that offences under Officials Secrets Act be included as a disqualification norm for bidders seeking stake in a PSU.

After seeking clarification from government on permitting Reliance to participate in the privatisation process, the Standing Committee on Finance said in its report tabled in Parliament that the scope of disqualification, in guidelines, should include the business activities of ''unhealthy, unethical and unscrupulous'' nature in its ambit.