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'Sell-offs can generate Rs 75,000 cr in 10th Plan'

The controversy over the divestment of public sector oil companies notwithstanding, Planning Commission Deputy Chairman K C Pant is confident that the Rs 75,000 crore (Rs 750 billion) divestment target for the Tenth Five-Year Plan will be achieved.

"The government has adopted a clear-cut policy on divestment and I have no reason to doubt that," Pant said in New Delhi on Wednesday.

Asked if the recent differences within the government over divestment could affect the initiative, Pant said, "In a coalition there are bound to be differences of opinion."

According to an internal study done by the Plan panel, the 'historical' price of 170 non-strategic public sector units -- out of a total of 230 PSUs -- is Rs 2,60,000 crore (Rs 2,600 billion).

"Even if 50 per cent of these PSUs are divested as per the present policy, we can easily achieve the Rs 75,000 crore target," he said, adding that these estimates had been carried out while excluding two leading oil PSUs -- Oil and Natural Gas Corporation and Indian Oil Corporation.

Also, if one were to conduct the same exercise using the current value of the 170 PSUs the actual realisation could be higher, he said.

Pant said the onus of implementing the divestment policy was also on the states. "State governments need to realise that they cannot carry on with loss-making PSUs or those that might perform better if divested."

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