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Thursday, July 02, 2009

Government should revive disinvestment plan

To raise atleast Rs 25,000 crore every year

The Economic Survey for 2008-09 was presented by Finance Minister Pranab Mukherjee in Parliament today, 2 July 2009.

The government should offload a minimum 10% stake in all profit making unlisted public sector enterprises and "auction" those that can't be revived, the Economic Survey, said, while recommending a disinvestment target of Rs 25,000 crore annually. The government should also list all unlisted public sector undertakings, the Survey added.

The government should revitalize the disinvestment program, which was earlier put on backburner in the last five years due to opposition from the Left parties, and plan to generate at least Rs 25,000 crore per year, the Survey tabled in Parliament today indicated

As regards the loss-making PSUs, the Survey said the government needs to auction all loss making PSUs that cannot be revived. For those in which net worth is zero, negative bidding in the form of debt-write off must be allowed.

The Economic Survey, which is tabled by the Finance Minister before the presentation of the Budget, provides the government's assessment of the economy, outlines the problems facing the country and suggests measures for dealing with them.

The Union Budget for 2009-10 will be presented by the Finance Minister Pranab Mukherjee in the Parliament on Monday, 6 July 2009.

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