Interview with Disinvestment Minister continues

Interview with Disinvestment Minister continues......

Q. Will the government put in money to restructure PSUs, dress them up before privatisation?

A. It can happen. It will be decided from company to company.

Q. Will you go in for open bidding till the final stages, and then opt for negotiation as was done in Britain?

A. I can't answer that at this stage. We'll cross that bridge when it comes.

Q. There is a fear that in some sectors, privatisation may create monopolies. In such cases, will the government delay disinvestment till the competition law is passed?

A. No. We'll keep the monopoly factor in mind. The principle is clear, where privatisation creates monopolies it is not in the interest of the consumers. Where it creates competition, that competition protects the interest of the consumer.

Q. The government is apparently working on a golden share concept. Won't that put off interested buyers?

A. We are examining the possibility and legality of this concept. Value is an important consideration but it is not the only consideration. For example, when you give Employees Stock Options (ESOPs) you give it at a cheaper value; when you decide to disinvest in the market in a situation-specific case, you don't get the same value that you get from a strategic partner. In some cases the principle of best value gives way to the larger public interest.

Q. You're confident that the golden share will not make the PSU less attractive to the buyer?

A. Well, in countries where it has been experimented, this did not happen.

Q. In UK the golden share was temporary. Is that what you're also planning?

A. We're still to take a final decision on the matter.

Q. Are the attractive VRS and ESOP packages meant merely to ward off criticism that employee's interests are not being taken care of?

A. I would look at it more positively. I think ESOPs is also a method of sharing corporate wealth. After all, these employees contributed to the company. Additionally it also serves the purpose of adding to the security net.

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