Committees Related to Disinvestment

The Rangarajan Committee on Disinvestment 1993

The Rangarajan Committee of 1993 was constituted by the government for making recommendations in context with the disinvestment. The committee said that:

• The units to be disinvested should be identified and disinvestment could be made up to any level, except in defense and atomic energy where the government should retain the majority holding in equity.
• Disinvestment should be a transparent process duly protecting the right of the workers.
• An autonomous body for the smooth functioning and monitoring of the disinvestment programme should be established.

This recommendation led to the Disinvestment Commission in 1996 as an advisory body having a full time chairman and four part-time members. The Commission was required to advise the government on the extent, made, timing and princing of disinvestment.

• It suggested four modes of disinvestment viz. Trade sale, Strategic Sale, Offer of shares and Closure or sale of Assets.
• In its budget speech of 2000-01, the government emphasized that more emphasis would now be paid on the strategic sale of public sector enterprises.

Disinvestment Commission (1996)

Disinvestment Commission (1996) under GV Ramakrishna identified 58 CPUs for purpose of disinvestment and suggested that the long term disinvest policy should stress that on minimizing budgetary support to unprofitable PSUs.