Committee of Ministers may replace EGoM on divestment

As the disinvestment process gathers pace in the new NDA government, the finance ministry has proposed setting up of a Committee of Ministers to decide on the timing and pricing of sale of government stake in public sector companies.

The decision on pricing and timing of disinvestment of public sector undertakings was taken by the empowered Group of Ministers (eGoMs) during the previous UPA regime. But all the GoMs and eGoMs were scrapped as soon as the new government took over in May this year.

The finance ministry has written to the Prime Minister’s Office for setting up of such a body that can decided on issues such as mode of disinvestment, timing and pricing, an official said. The proposal, sent three weeks ago, has yet not been returned by the PMO.

"We have written to the Prime Minister's Office suggesting for the Committee of Ministers on disinvestment that can includes the minister in charge of the administrative ministry besides the prime minister and the finance minister," the official said.

The ministry is awaiting the response of the PMO on its proposal, which was floated almost a fortnight ago, he said.

The government has already decide to sell its stake in Steel Authority of India Limited, Hindustan Aeronautics Ltd and Rasorial Ispat Nigam Ltd.

The Department of Disinvestment has obtained the Cabinet approval for the same.
On Friday, Finance Minister Arun Jaitley had informed Parliament about the government’s intent to sell 10 per cent each in HAL a RINL, and 5 per cent in SAIL in the financial year ending March 31, 2015.

For the current fiscal, the government has set a budgetary target to raise Rs 58,425 crore through disinvestment. This includes Rs 43,425 crore from selling stake in public sector companies and another Rs 15,000 crore from sale of residual stake in the erstwhile government companies -- Hindustan Zinc (HZL) and Balco.