“WE HAVE LOOKED AT ALL MODELS”
G overnment think-tank Niti Aayog created a record of sorts when it came out with a report for a disinvestment strategy for India’s PSEs in just two months.
Amitabh Kant, CEO of Niti Aayog, talks about the broad recommendations given by its PSE Committee and their rationale, in an interview to Joe C. Mathew. Excerpts:
Niti Aayog was asked to identify the PSEs that should be considered for strategic disinvestment and suggest a future path for loss-making and sick units. What was your recommendation?
This has been driven with passion and conviction by Mr Panagariya (Arvind Panagariya, Vice Chairman, Niti Aayog), because of his belief that governments should only be (running PSEs) in strategic areas and that, too, if it can be done profitably. So, we began with a broad view that unless and until the PSEs are functioning in the areas of national interest, or in areas of huge strategic importance, the government should not be in the business of running businesses. And if you run them, you should run them profitably. Based on this guiding principle, we recommended the sale of 74 sick and loss-making units and recommended 44 profit-making units for strategic disinvestment.
Which are those companies?
I am not giving you the names. We are like a disinvestment commission. We have examined the issues on merit.
It took just two months for Niti to submit its report. Did you have any international models to look at?
We have looked at all models. We also consulted all stakeholders. In the case of loss-making and sick units, there were no issues (in the selection of companies, as Niti picked all of them). In the case of identifying the 44 profit-making companies for strategic disinvestment, we had to consult all stakeholders. We held eight rounds of meetings within 45 days. We consulted every department and ministry before making this recommendation.
What next?
We are only a recommending body. It is for the government to take that call. It is for the concerned departments to take up the case of units that need to be closed. The Department of Investment and Public Asset Management (DIPAM) will have to drive the strategic disinvestment.