P Chidambaram admits disinvestment on hold

New Delhi, June 16: Finance Minister P Chidambaram has admitted that the process of disinvestment is on hold and outlined his reform agenda for the next two years, including improving the performance of power, coal and mining sectors and making the delivery systems relating to social sectors more effective.

In an interview to a private channel, Mr Chidambaram said bigger thrust was needed in areas where reforms have not yet taken off the ground.

"If we can get our act together over the next 22 months, the agriculture agenda, agenda on power, coal and mining" needs to be pursued with greater vigour as also better delivery on roads, healthcare and water supply, he said.

The Minister admitted that there were lost opportunities for the UPA government due to differences among the alliance partners.

"Maybe I am not a very good politician or a good advocate, there are differences, democracies elect political parties with different ideologies, some things are possible some are not", he said.

At a time when agricultural growth was the biggest concern of the UPA government which was voted to power on the slogan of 'Aam Admi,' Mr Chidambaram said consumers should be willing to pay more for food products. This will enable Indian agriculture to prosper.

"If you want agriculture to remain renumerative and self- sufficient, the only way is for the consumers to spend more of their disposable income on food", he said.

When asked whether the nation can afford higher inflation, Mr Chidambaram quipped: "No we cannot but I don't think paying one rupee more per kilo is inflationary." Talking about the stalled disinvestment programme, Mr Chidambaram said there were several PSUs which were yet to turn efficient.

"Some yes, but some are being turned around. The way to turn around some PSUs is by imposing greater discipline, cleaning up the balance sheet and setting stiff targets. About 12 to 13 PSUs now do not depend upon the government for wages. They are on a sound footing, but I concede that there are some PSUs that are performing poorly", he said.

When asked whether he would embark upon a disinvestment programme if the Prime Minister pushes for it, Mr Chidambaram said it was on hold.

"The point today is that it is on hold. The only leeway is that if a PSU goes in for an IPO we can piggy back on that to raise funds," he said.

UNI