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Naik advocates caution over oil PSUs selloff

A day after Prime Minister Atal Bihari Vajpayee lashed out at the critics of the divestment policy, Petroleum Minister Ram Naik maintained on Thursday that a cautious approach was needed before taking a decision on the privatisation of public sector Hindustan Petroleum Corporation and Bharat Petroleum Corporation.

"A cautious approach is what is being called a mid-term review. I am sure this will help to put the divestment process in proper prospective," he added.

Asked about Vajpayee's remarks, he said: "PM had also said that there will be a debate on the issue. The debate is on."

Decision on privatisation of oil refiners BPCL and HPCL will be taken within three months as had been decided by prime minister last month, Naik said.

The petroleum minister reiterated that he was not against divestment in the oil sector but strategic sale was not a desirable option.

Linking his opposition to strategic sale to the need for maintaining continuous supply of petroleum products, Naik said wealth created in HPCL and BPCL should go to the people at large through public offer.

Asked if the prime minister had singled out critics (of the divestment policy) within the ruling National Democratic Alliance , Naik said "to me he, as the highest authority, reiterated the policy of divestment. On my part I support divestment."

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