Financial Daily from THE HINDU group of publications
Friday, Apr 18, 2003
Financial Daily from THE HINDU group of publications Friday, Apr 18, 2003 |
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Opinion
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Letters Disinvestment gimmicks
This is with reference to the editorial "Disinvestment grounded" (Business Line, April 17). The editorial brings out the indifference of the Government in dealing with the core factors of disinvestments. The Air India - Indian Airlines combination is presently out of the divestment process, presumably out of compulsions arising from the coming Assembly elections in four states. In short, the Centre seems to be more interested in stalling the divestment process, rather than implementing it ideally. It is true that there is no need for the Government to invest any money in a unit earmarked for strategic sale. The strategic investor, who may be more prudent, can make a better investment after acquisition. Moreover, the decision for purchase of new aircraft could have been subjected to the divestment plans. The decision to re-tender sale of SCI may invite litigation from certain quarters. In the absence of attractive terms, the overseas participation will be marginal. But here also, the Centre may lose in the valuation process, and the whole process may turn out to be less competitive. It is high time for the Centre to pursue a fixed divestment policy sans political considerations. C.P. Velayudhan Nair Kochi
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