IIF,
10th Oct. 2002 ; All objection to disinvestment do
not hold. The problem is that BJP has messed up the ,Matter
on three counts", said Dr. Bharat Jhunjhunwala,
Former Professor ,IIM Bangalore and Options at India
Institute of Finance, Delhi
Dr. Jhunjhunwala
described the suggestion of offering shares to public as counter
productive as management in PSU rests with government bureaucracy.He
stressed that share holding in PSU is no guarantee of better
management of PSU's." The objection that valuations are
low is aslo not aceptable as there are no higher bidders"
said Dr. Jhunjhunwala .
He opined
that autonomy to PSU is no solution because the management
can misuse the autonomy .He advocated the accountability to
Parliament than autonomy.
According
to him, Government has tried to sell PSU's to MNC's inside
of domestic companies as in case of Modern Foods has led to
criticism of disinvestment process. The other strategy which
has faild is selling one PSU to another PSU as in case of
IBP Co. and thirdly government has tried to create monopolies
as in case of VSNL.
He emphasised
that government should proceed with disinvestment process
agter these corrections.
