Economy: Privatisation: The Big Fight [Contn.] Interview with Arun Jaitley


	July 17, 2000

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INTERVIEW: ARUN JAITLEY
"I have not felt any absence of power"

India Today issue dated July 17, 2000 Minister for disinvestment Arun Jaitley spoke to INDIA TODAY Associate Editor Rohit Saran on the role of his ministry, current problems with privatisation, and the way out:

On opposition to privatisation within the NDA Government:
There is complete unanimity on the need for disinvestment. There can be more than one opinions on the choice of a particular PSU. Eventually it is through the strength of the cabinet system that these issues are resolved. Besides, there is no presumption that the views of the Disinvestment Ministry are always correct and therefore must prevail. Remember, that since the process of disinvestment started in 1991 successive governments have been committed to it. Almost all state governments, which have different political parties in power, are pursuing privatisation.

On the mandate of the Disinvestment Ministry:
We are the administrative ministry for disinvestment. We initiate the process, facilitate decisions by the Cabinet Committee on Disinvestment (CCD) and implement them.

On the adequacy of power for his ministry:
I have not felt any absence of power. That is not an issue.

On the slow progress of disinvestment:
The process of disinvestment begins with intra-government consultations and CCD decision on disinvesting in a particular PSU. The next stage is the appointment of a global adviser. The global adviser advises on market conditions. After that expression of intentions are invited and a due diligence is conducted. Following that a share holder agreement is prepared. The process ends with a final bidding and signing of the agreement.

The first few cases are important because the system must understand it. It's also very important that the whole process must be very transparent. Even if we get delayed on one or two PSUs today, it does not matter as long as we are setting the right precedent for the future. Once some PSUs are in the pipeline the process will automatically pick up speed. It is very important for us to create successful cases of privatisation.

On problems with Indian Airlines' disinvestment:
We have finalised the global adviser and a letter will be issued shortly. We are endeavouring to finish the disinvestment in Indian Airlines this year.

On disinvestment in HPCL and Maruti Udyog:
There is no official decision on disinvestment in these two companies.

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