The Hindu Business Line : No privatisation of strong PSUs, says Manmohan — Govt holding in banks won't go below 51 pc

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No privatisation of strong PSUs, says Manmohan — Govt holding in banks won't go below 51 pc

Our Bureau

New Delhi , May 20

WITH coalition partners, including the Left parties, closely watching his every step, the Prime Minister-elect, Dr Manmohan Singh, on Thursday said that the United Progressive Alliance (UPA) Government would not privatise strong public sector companies (PSUs) and that the Government holding in public sector banks would not be allowed to fall below 51 per cent.

"PSUs such as Gail and ONGC will remain in the public sector. There is no intention to privatise them. Similarly, there are nationalised banks that will remain in the public sector. These will not be privatised," Dr Singh said at his first press conference after being invited by the President, Dr A.P.J. Abdul Kalam, to form the new Government.

He, however, said that PSU banks would not be barred from raising capital through the public offer route provided government equity remains above 51 per cent.

The UPA Government's policy on the public sector would be in stark contrast to that of the outgoing National Democratic Alliance (NDA) Government, which had aggressively pressed ahead with its disinvestment programme. It had also introduced a Bill to allow the reduction of Government holding in PSU banks to 33 per cent.

"We are not pursuing privatisation as part of our ideological commitment. India needs a strong private sector as also a public sector," Dr Singh said. He said the privatisation route would be resorted to only in cases where the PSUs are not able to "compete on an equal footing with the private sector or become a drag on the exchequer."

Dr Singh's statements on privatisation would go a long way in removing any misgivings that the Left parties had. The latter had openly expressed their desire to see a complete reversal of the NDA policies on the issue. Leaders of the Left, which is providing outside support to the Government with its formidable strength of 60 MPs, have, in fact, gone to the extent of demanding a dismantling of the Ministry of Disinvestment.

Dr Singh said the Common Minimum Programme (CMP) of his Government would be growth-oriented and progressive and would create an investment-friendly environment.

"The aim of reforms (pursued by the UPA Government) would be to remove poverty and increase employment through relief to decentralised sectors," he said. Assuring that the interests of workers would be protected, he said his Government would ensure against job losses.

The Prime Minister-designate said the main stress of reforms would be on providing education and health for all, improving environment, housing for millions of slum dwellers and increasing agriculture production.

Dr Singh said he was against giving free power to farmers as a policy. However, he defended the Andhra Pradesh Government's decision to extend free power as it was taken considering the plight of the farmers in the State. The AIADMK Government in Tamil Nadu has also followed suit.

"This (not levying user charges) cannot become the norm for all public services, wherever possible we must have the listed user charges. There is also scope for cross-subsidisation," he said.

Stating that his Government would continue the ongoing infrastructure development programmes initiated by the NDA Government, Dr Singh said, "There is need for massive investment in roads and I assure you we are not out to dismantle the scheme of the previous Government. Roads are a national priority," he said.

He said an investment-friendly environment would be that which would encourage investment by both domestic entrepreneurs and NRIs.

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