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Review privatization policy: Naik
Friday, 04 October 2002, 19:30 IST
NEW DELHI: A day after Prime Minister Atal Bihari Vajpayee asserted that the country's privatization policy would continue, Petroleum Minister Ram Naik called for a mid-term review of the process.
Naik, however, hastened to add that he was not opposed to privatization.
"I have never opposed disinvestments. In the last three years, of the total disinvestments proceeds of over 
90 billion, around 70 billion plus has been from state-owned oil companies, which works out to about 80 percent," said Naik at a press conference to announce the launch of a website of the ministry's anti-adulteration cell.
Naik is known to have opposed the government's disinvestments in oil majors Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) on security considerations.
Disinvestment in the two companies has been deferred by three months.
On Wednesday, Naik, Defence Minister George Fernandes and Human Resource Development Minister Murli Manohar Joshi, had met to discuss the issue.
Hours later, a combative Vajpayee declared that the sell of government stake in public sector units would continue.
On Thursday, Naik insisted it was time for a mid-term review of the policy.
"Like a lion takes stock of the situation before making a move, it is time for a mid-term review. It is being proposed that National Democratic Alliance (NDA) convenor George Fernandes conduct a review," said Naik. "This will put disinvestments in the proper perspective as it goes forward."
According to Naik, the sale of HPCL and BPCL is not advisable "basically because the country presently needs assured supply of the hydrocarbon fuels".
"Previous experience has indicated need for this stand," he added. "The assets of the two oil majors should go to the people at large through a public offering."
When the two companies were incorporated, their total equity was 430 million. It is now over 6 billion.
"Except the initial investment of 430 million, the government has not invested anything more in the two companies which currently have an asset value of 200-250 billion each. These shares should go to the people at large."
On the issue of creating open competition for state-owned companies, Naik said with the opening up of the petroleum-marketing sector in April, the doors have been opened for the private sector. In addition to 19,000 petroleum retail outlets, permission has been granted to two private companies and two state-owned companies to create infrastructure for another 8,000 outlets.
Expressing full faith in Vajpayee, Naik said the prime minister had indicated that there could be a debate on privatization.
"Cabinet ministers should give their views in the debate. It is desirable that the Cabinet should discuss this issue and arrive at a decision."
Naik held that hurry and haste on the issue would have a disastrous effect.
"Petrol and diesel are sensitive items. Any shortage even for a few hours could lead to a problem. Hurry and haste would have disastrous effect," said Naik.
Source: IANS
90 billion, around 70 billion plus has been from state-owned oil companies, which works out to about 80 percent," said Naik at a press conference to announce the launch of a website of the ministry's anti-adulteration cell.
Naik is known to have opposed the government's disinvestments in oil majors Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) on security considerations.
Disinvestment in the two companies has been deferred by three months.
On Wednesday, Naik, Defence Minister George Fernandes and Human Resource Development Minister Murli Manohar Joshi, had met to discuss the issue.
Hours later, a combative Vajpayee declared that the sell of government stake in public sector units would continue.
On Thursday, Naik insisted it was time for a mid-term review of the policy.
"Like a lion takes stock of the situation before making a move, it is time for a mid-term review. It is being proposed that National Democratic Alliance (NDA) convenor George Fernandes conduct a review," said Naik. "This will put disinvestments in the proper perspective as it goes forward."
According to Naik, the sale of HPCL and BPCL is not advisable "basically because the country presently needs assured supply of the hydrocarbon fuels".
"Previous experience has indicated need for this stand," he added. "The assets of the two oil majors should go to the people at large through a public offering."
When the two companies were incorporated, their total equity was 430 million. It is now over 6 billion.
"Except the initial investment of 430 million, the government has not invested anything more in the two companies which currently have an asset value of 200-250 billion each. These shares should go to the people at large."
On the issue of creating open competition for state-owned companies, Naik said with the opening up of the petroleum-marketing sector in April, the doors have been opened for the private sector. In addition to 19,000 petroleum retail outlets, permission has been granted to two private companies and two state-owned companies to create infrastructure for another 8,000 outlets.
Expressing full faith in Vajpayee, Naik said the prime minister had indicated that there could be a debate on privatization.
"Cabinet ministers should give their views in the debate. It is desirable that the Cabinet should discuss this issue and arrive at a decision."
Naik held that hurry and haste on the issue would have a disastrous effect.
"Petrol and diesel are sensitive items. Any shortage even for a few hours could lead to a problem. Hurry and haste would have disastrous effect," said Naik.
Source: IANS