The Hindu Business Line : Seek Parliamentary nod before divesting stake in Navaratna PSEs: Experts

THE Left parties demand that the Government secure Parliamentary approval before any public sector disinvesment has received some support from an expert group set up by the Department of Public Enterprises (DPE).

The Ad hoc Group of Experts (AGE) has recommended that consent of Parliament should be taken prior to bringing down Government stake in Navratna public sector enterprises (PSE) to below 51 per cent.

However, the Department of Disinvestment has not favoured the recommendation.

AGE's recommendation pertains to Category I PSEs, which include navaratnas, miniratnas and consistently profit making companies.

Within the Government the opinion is divided. The only Ministry that has supported the recommendation is the Ministry of Petroleum and Natural Gas.

The Finance Ministry is of the opinion that the recommendation is not consistent with the existing legal framework regarding matters requiring the consent of Parliament.

The Left parties have been suggesting that all disinvestment decisions should be approved by Parliament. The issue first came to light when Government had taken up the proposal of disinvesting a portion of Government stake in HPCL and BPCL .

At that time a public interest litigation was filed in the Supreme Court that is still pending.

The Department of Disinvestment (DoD) is now citing the Supreme Court case as an additional reason for not acting on the recommendations.

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