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SCOPE asks for definite model of asset valuation for PSUs

The Standing Committee on Public Enterprises has asked the Centre to adopt an internationally accepted formula of asset valuation for public sector units put on the block.

"We have asked the government to adopt a model which is internationally accepted for valuation of the PSUs," SCOPE chairman D K Varma told reporters in New Delhi on Friday.

"There are three or four such models based on international benchmarking. If the government sticks to one of them, it will help in maintaining transparency in the divestment process," he said.

Referring to the recent controversy over Balco divestment, he said that the adoption of any one particular valuation model would help to avoid such an imbroglio.

Varma, who was in the metropolis to address a seminar on 'Restructuring of PSEs', also suggested that a legislation should be brought in barring interference by state governments in Centre's decisions on divestment.

The intervention of the Chhattisgarh government in the Balco case had slowed the divestment process, he said.

"Once the Centre has identified any company for divestment, it should be implemented fast," he added.

However, the Centre needed to have a clear roadmap for the whole exercise depending on which sector to leave and which not to.

Echoing Varma, West Bengal Governor Viren J Shah called for a long-term divestment strategy, giving paramount importance to employee protection.

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