The Hindu : National : Shares: UPA "allies consulted"

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Saturday, Feb 10, 2007
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National

National

Shares: UPA "allies consulted"

Special Correspondent

Government has to do what is necessary

NEW DELHI: The Congress on Friday said "no party has a veto power" in a coalition arrangement while maintaining that all constituents and supporters of the United Progressive Alliance had been consulted before the Government decided to "piggyback" on the Initial Public Offerings (IPOs) of three public sector power companies.

Defending the decision at the party's regular briefing here, Congress spokesman Abhishek Singhvi denied that the Government's move to piggyback on the IPOs was "disinvestments ... This is a small partial off-loading of shares in the public sector companies and was done after full consultations with different elements of the coalition arrangement."

Though Mr. Singhvi insisted that the move was not disinvestment, the note circulated by the Government after the Cabinet meeting on Thursday called the decision "disinvestment of small portions of Government's shareholding in Rural Electrification Corporation Limited (REC), Power Grid Corporation of India Ltd. (PGCIL), and National Hydro-Electric Power Limited (NHPC).''

As for the opposition registered by the Left parties to the move, Mr. Singhvi said: "Within any coalition, it is not possible to ensure the concurrence of every ally but the Government has to do what is necessary for the country." Further, he hastened to point out that the money the Government hopes to raise from piggybacking on the IPOs of REC, PGCIL and NHPC would go to the National Investment Fund to be used for social sector development and revival of ailing public sector companies.

Meanwhile, the Centre of Indian Trade Unions (CITU) on Thursday opposed the decision to disinvest shares in REC, PGCIL and NHPC under the cover of IPO and in the name of investment in the social sector and sick public sector units. Pointing out that Central public sector undertakings have as on date reserve and surplus of more than Rs. 3 lakh crore and the utilisation of this fund has been around 30 to 35 per cent during the last few years, the CITU demanded an explanation from the Government as to why this amount cannot be treated as investment fund.

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