Madam I wish to draw the attention of the government through you to the disinvestment of

shares in the public sector undertakings. As we all know last year in the budget there was a provision to
disinvestment of shares of selected public sector undertakings to the extent of 20 percent and the
government hade calculated that they would receive by way of revenue of rupees 2500 crores. What
has actually happened is that the realisation from the shares which were decided to be sold has been
much more. The government has got rupees 3000 and odd crores. The companies which are selected
are companies which are doing well where they are the Indian Oil Corporation or the Steel Authority of
India Limited or the Oil and Natural Gas Commission or MTNL. These are the companies which the
Government has earmarked their part of the equity will be sold just now to begin with the material
found and later on to the public. There are a few points to which I want to draw the attention of the
Government while there my be nothing objectionable in disinvesting part of the Government equity.
Now there is a talk that in view of the experience the disinvestment to go up to 49 percent. Since the
government is considering the disinvestment to such large extent of view point should be born in mind
when we sell its own share in public its one time revenue that goes when you sell the share which have
goes up. It is therefore ideal part of the government to ensure that the you are so post price actually you
get worth of the shares. I do not know why the government is not come forward to tell us. What is the
method of calculation of the price at which they are selling they are selling their shares. Ever when a
public provide company goes public it fixes a premium which is vet point controller to the capital issues
of the ministry of finance. In public sector undertakings there should be a method by which the
parliament must know what price the government has fixed the shares of public sector undertakings
and it would be much more advantageous and it would be a calculated procedure to follow if some
there is a sort of tender of public issue of these shares.

Why should there be secrecy. There should be total transparency in the transaction.
Government should come out with the position paper giving detail such as what are the names of the
undertakings whether they have already sold the shares which they proposed to sell. What are the
numbers of shares have sold? What is the price fixed? Who were the buyers? And what was the method
followed in selling those shares? I understand from the speech of the Finance Minister in the Budget
that for the next year they are going to evolve some guidelines and procedures.

My request to the Government is that they should come out with a clear cut procedures where
the Government realizes a best price for the shares and the shares are widely distributed to the public
in case they are going to make a public issue. Madam my other point apart from the high realization is
the use of money so collected. It is very well known when any private entrepreneur sells capital assets
the proceeds are used either to buy another capital asset or to repay debt. Unfortunately because of the
difficult financial situation of the Government the money collected last year has been spent on
expenditure. It is a very dangerous thing. Madam if you sell all your premium shares of public sector
undertakings and use that money for you current year expenditure then it is a very bad way of financial
management. I request the Finance Minister through you that this year whatever realization they will
make out of the proceeds of the shares of the public sector undertakings should be strangely used either
to acquire another asset or to repay debts so that liabilities of the Government come down to that
extend. It is crudent financial management to sue the aggregation of capital account for either another
asset on the capital account or the debt repayment of the capital account.

Sir this is very serious matter and if we are going to amend the Constitution and oust the
jurisdiction of the High Court and Supreme Court there may be other people who would like to amend
the Constitution for certain other purposes. Going up to the High Court and getting rupees is not a right
provision. You know people are going to the High Courts and getting rupees. Are we going to amend the
Constitution to make it impossible for people t get these writs that will be a very serious matter and it
will be a wrong things if we begin to amend the Constitution because it does not please a particular
section of the people of India.