After taking charge for the second time BJP Government at the centre, is desperate to meet its annual disinvestment target of Rs. 10,000 crore. Ministry of finance has already prepared a blue print for this disinvestment programme. The blue print includes 1) selling stake in IOC, ONGC, GAIL, NALCO and CMC; 2) Some companies like Bharat Petroleum, HP, IPC are also identified for disinvestment. Government of India recently concluded disinvestment is Gas Authority of India Limited. It creates the obvious debate over the actual motive of Central govt. on disinvestment at PSUs. In the coming session of Parliament Government will definitely face the question that why the govt. is desparate to sell the share in blue chip PSUs like Gail, VSNL, MTNL, ONGC, and IOC. The issue dilutes govt. stake to 67.3% from 83.3%. the shares of Gail could be sold minimum at Rs. 115, where as Gail have got the share price at Rs. 70 when the ruling market price is Rs. 79/-. Another surprise package of the Gail disinvestment was that nearly 50% of the shares offloaded were purchased by ENRON and British gas. This raises more questions as for the first time foreign companies which are active players in India, have thought fit to acquire shares through the GDR route. Taking the route of Gail, Govt. of India is willing to disinvest its share of PSU, about 19 million shares in MTNL to be divested and govt. equity to be reduced by about 3% . It is increasingly apparent that govt. will release its share from its companies which will lead to decontrolling of public service organisation. Govt’s reluctance over maintaining ownership of public service units will lead to destabilise our present structure. The people will be affected by these policies in a long way. Parliament should resist the suicidal move of Govt. of India. Not only within the Parliament, people’s movement to be formed to restrain the Government. We should take the initiative to form public opinion in defence of public sectors.

15th November, 1999.