New Delhi: The disinvestment department has suggested that new government could explore the possibility of strategic sale of state owned companies in the non-core sectors including steel and cement.
All the departments are currently preparing presentations on what steps the new government could take and what were the policy mis-steps of the previous regime.
The telecom department has suggested providing wi-fi services in urban areas in its action plan for the new government. This even as petroleum ministry has termed hiking the cap on the number of subsidised domestic LPG cylinders as a mistake.
In a presentation to the cabinet secretary, disinvestment department has suggested that the strategic sale in the non-strategic PSUs will help in meeting the ambitious disinvestment target for the current fiscal. The non-strategic sectors which have been suggested are cement, steel, textiles, fertiliser, petrochemical and transport equipments.
The disinvestment department feels that such a step will help the government in realising the true value of the investments made in setting up of the PSU. However, it said that government could keep a control on PSUs in important sectors including petroleum, heavy engineering, power and telecom. Already the government is expected to sell its remaining stake in Hindustan Zinc (HZL) and Balco in 2014-15. During previous NDA regime government sold majority stakes in these two companies to the Vedanta Group.
The telecom department in its presentation talked about need of regulation to promote growth in sector. It has said that the challenges which the sector faces are shaking confidence of investors, debt burden on telecom firms, litigations and taxation. The petroleum ministry has listed national oil firms losing focus on domestic exploration and legal disputes around signed contracts with private explorers as policy mis-steps of the previous regime.
