Divestment is part of government agenda: Mukherjee

Finance Minister Pranab Mukherjee Tuesday said the United Progressive Alliance (UPA) government remained committed to divesting stakes in the state-run companies, but without diluting their public sector character.

Replying to the debate on the national budget in the Lok Sabha, the lower house of parliament, the finance minister said there was some disappointment that not enough was said on the government's divestment policy in his July 6 budget speech.

"Perhaps, people expected me to announce the names of the companies and how much money we intend to raise," he said, but added the government's policy on divestment remained what President Pratibha Patil told the joint session of parliament last month.

Mukherjee said public sector undertakings were the nation's wealth and part of that should rest in the hands of the people. Accordingly, while retaining at least 51 percent equity, the government will encourage people's participation in the divestment programme.

"My ministry has initiated the discussions for identifying these undertakings," he said, adding: "Details will be announced in due course."

In the budget speech, too, Mukherjee had said that while selling the shares of state-run companies to the public, 51 percent holding will remain with the government, especially in national banks and insurance companies.

He later said the reason why not much had been said in this regard during his July 6 speech was because the budget was not a document to spell out micro policy details. That was also why, he alluded, a clear direction was missing at that time.

The budget had hoped to raise only Rs.1,120 crore (Rs.11.2 billion/$224 million) this fiscal from sale of stake in state-owned units such as RITES, Cochin Shipyard, Manganese Ore, Telecommunications Consultants India, Rashtriya Ispat and Satluj Jal Vidyut Nigam.

Last updated on Jul 14^th, 2009 at 16:39 pm IST--IANS