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BJP for separate account for sell-off money

A senior Bharatiya Janata Party member said on Thursday that in order to boost public confidence and transparency in the government's divestment policy, a separate account for the sell-off money must be maintained.

Articulating the views of the party, Jagadish Shettigar, former convener of the BJP Economic Cell and member of the Prime Minister's Economic Advisory Council, said the objective of divesting government stakes in the public sector was to use the money in the social sector. Maintaining a separate account would go a long way in instilling confidence in the divestment, which should not be viewed as an instrument to bridge the fiscal deficit.

The people has a right to know what was happening to the money generated out of divestment and where it was spent. This would dispel doubts they have about the whole process as the income generated out of divestment would go to the consolidated fund of the Government of India.

He said the money generated out of divestment could be used for retiring existing high cost loans.

The BJP wanted the PSUs in the defence, railways and nuclear sectors to remain under government control and hence there should be no divestment, he said.

The party favoured divestment of petroleum sector companies but they should maintain a certain amount of stocks compulsorily for the government's use in times of emergencies like calamities and wars.

UNI

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