People's Democracy

I draw your attention over the VSNL deal of privatisation and subsequent episode of transferring assets worth of Rs 1200 crore of the disinvested company to a subsidiary of a company which took over. This has taken place in the form of liquidity transfer in lieu of equities. I believe you will agree with me that this act of acquisition and transfer has brought the entire process of disinvestments under cloud requiring in depth introspection and remedial measures. Graveness of the situation is vindicated by no less than a minister of cabinet rank occupying a position of repute. Sri Pramod Mahajan, the minister of communication is reported to have expressed his concern by designating the decision as ‘Mockery of disinvestment process’ and said "The TATAs bagged 25 per cent of VSNL for Rs 1439 crore and are currently in the process of shelling out another Rs 1151 crore for an additional 20 per cent. But they are now mopping up Rs 1200 crore from VSNL, thus reducing their acquisition cost by 95 per cent."

I do not wish to reduce the episode as a reflection of inter-corporate dispute, as is being depicted by a section of press owned by corporate houses or as a matter of legal tenability as thrown open by Shri Arun Shouri, minister for disinvestment. The events have wider ramifications. The basic promise where the government tried to drive in pursuing the disinvestment policy was that the government will provide a cover so that the PSUs so disinvested/privatized are not winded up. The VSNL disinvestment episode has shown how the TATAs entered VSNL with a paltry of fund through the front door to capture 25 per cent share and taken away Rs 1200 crore through the back door and pauperize one of the navratan PSU.

I trust you will join me to believe that searching legality to the grievous corporate criminality is apolitical and apologetic too. When government is committed to ensure that no disinvested PSU is winded up and disinvested price is fixed at the lowest level on that consideration, why government has underplayed the need of providing necessary protective clause in the disinvestments agreement? The format prepared by the disinvestment ministry has covered all the aspects excepting the protective clause. The so-called maintenance of 26 per cent government share, on which the finance minister was so effusive, proved ineffective in case of VSNL. One government director discovered the wrong doings only after getting it passed by raising his hand and the other preferred to abstain himself and make brave statements afterwards.

I have expressed my apprehensions on disinvestments process in parliament on number of times. I had conceived long back its real destination is ‘Massive transfer of public assets to private without any advancement in the industrial economy.’

Prime Minister Sir, I would request you to raise yourself to the degree of morality and public commitments you professed throughout your life and bring things to order. I would, in this context draw your attention to your speech on the floor of Rajya Sabha in response to debate on Motion of Thanks to Rashtrapatiji, when you were specific that your government is not in favour of large-scale privatisation. But with the total disregard to your assurances, industries are being disinvested in large scale and through that route, massive transfer of public wealth is taking place.

I believe you, as the custodian of people, will bring an end of this transfer.