Chambers regret holding disinvestment; call for speedy decision

New Delhi, July 6 (UNI) Expressing concern over the holding back of disinvestment in Nevyeli Lignite Corporation, the business chambers today urged a speedy decision on the process.

''The limited disinvestment of government equity in profit making Nevyeli Lignite Corp should have been effected as per schedule, as it would not have created a social unrest,'' ASSOCHAM President Anil K Agarwal said.

He said disinvestment in profit making companies is the reality of the day as the government needs revenue to contain its fiscal deficit and also needs resource generation for building infrastructure.

Confederation of Indian Industries (CII) said since large public investments are required in critical areas like education, health and infrastructure, government could face major resource constraints, without disinvestments.

Meanwhile, Federation of Indian Chambers of Commerce and Industry (FICCI) regretted the government decision to put on hold, all further disinvestment of public sector unsits and said ''this will send wrong signals about the future of reforms programme of the country.'' FICCI President Saroj Kumar Poddar pointed out that disinvestment of PSU shares had played a critical role in the development of the Indian capital market since reforms started in 1991.

He hoped that the government would review the decision in due course keeping in view the broader interests of the Indian economy and attractiveness of India for global investors.

UNI CS RA KP1913