The Union Budget, expected to be presented in the first week of July, is not likely to contain any significant policy measures on disinvestment of public sector undertakings (PSUs), it is learnt. Even as the government is open to the idea of disinvestment, voices of dissent are already being heard.
Earlier this week, finance minister Pranab Mukherjee had a meeting with trade union leaders and there’s no consensus on the issue of divesting PSUs yet, sources said. Therefore, the thinking within the government is that the Budget may not be an instrument for PSU divestment.
Although President Pratibha Patil’s address to both houses of Parliament on Thursday mentioned that the government would develop a roadmap for listing and people-ownership of PSUs, this is not among the steps identified for the first 100 days of the new UPA regime.
The President said, “our fellow citizens have every right to own part of the shares of PSUs while the government retains majority shareholding and control.” The government would ensure that its equity does not fall below 51% in these entities, she added.
Meanwhile, DNA Money has reliably learnt that two PSU public issues could possibly reach the market in the next 100 days. The Department of Disinvestment in the finance ministry is currently working on these issues.
Sources pointed out that recently, top officials of the disinvestment department had sought the finance minister’s direction on disinvestment policy. These officials had indicated to the FM that disinvestment of public sector enterprises is a long-drawn process and that each case may take over a year once the policy on the issue is clearly articulated by the government.
Earlier, in February, a list of disinvestment proposals was given to Mukherjee by finmin officials, when he was the FM as a stop-gap arrangement during the previous UPA regime.
Mukherjee told the media last week that the government would push reform measures while initiating steps to boost inclusive growth. He had also said that the government would ensure economic revival while maintaining fiscal prudence. He did not mention ‘disinvestment’ in his opening remarks after taking charge as the finance minister, and subsequently evaded questions on the issue.
Mukherjee’s remarks and the President’s address are indicative of what the Budget may contain, sources pointed out.
Even as the buzz in Raisina Hill, where the finance ministry is located, on Thursday was that the Union Budget would be presented on July 3, a finmin official said the date was yet to be fixed. “July 3 is one of the proposals, and the Budget day could be a little later than that,” he added.
July 6 or 8 are the other two likely dates being mentioned.
