All of 28 MPs in Lok Sabha listen to Shourie’s reply

Replying to a five-hour debate, Shourie hit back at the Congress for opposing the process at the Centre while their governments in Punjab, Karnataka and Madhya Pradesh were moving swiftly to privatise state enterprises on the lines of the Central model. He said 37 of the 39 PSUs privatised between 1991-2000 were profit making. Of the 34 PSUs divested between 2000 and 2002, only eight were making profits.

When Opposition leaders pointed out that the Government could not privatise HPCL and BPCL as these had been set up by an Act of Parliament, Shourie said he would refer the matter to the AG and then take it up with the Cabinet Committee on Disinvestment (CCD).

He pointed out that 49 per cent of HPCL shares, 34 per cent of BPCL shares and 40 per cent of VSNL shares had already been divested by earlier governments. Even Maruti, which had been nationalised, was divested to 50 per cent way back in 1992.

‘‘It is not a question of one share or 100 per cent equity. If earlier governments could sell equity in companies acquired through Acts of Parliament, what is wrong now.’’

Allaying fears that privatisation of the oil sector would unsettle the country’s strategic resources, Shourie said there existed a provision in the Petroleum Regulatory Bill for take-over of the oil companies by the Government in case the need arose.

With the Shiv Sena joining the Opposition in raking up the Centaur hotel resale issue, Shourie clarified that the Batra Hospitality had not taken Government permission for resale of the hotel in Mumbai. ‘‘We have referred the matter to the Law ministry for opinion. In case any illegality is found, the Government will take remedial action.’’

Countering the Sena charge that the hotel employees were being wronged, Shourie wondered why the Shiv Sena with its ‘‘very powerful union in Mumbai’’ had not cared to approach a labour court. He also rejected the charge that the death of three employees had anything to do with the disinvestment process. All three, he said, were victims of illness.

Earlier, Samata Party member Prabhunath Singh had the Opposition cheering when he threatened that his party would withdraw its support to the Vajpayee government if its concerns on the disinvestment issue were not addressed.

‘‘Are our public sector units owned by Atal Behari Vajpayee or Arun Shourie? Before deciding to sell them, did the government take the views of the people of the country?’’ he wondered, reminding the House that even NDA partners were against the disinvestment policy.

The Samata member went on to target the Reliance group and alleged that the Government was taking decisions under its influence. Given the poor attendance in the House, especially among the treasury benches, the effect of Singh’s attack on the government was not very discernible. But it did provoke a BJP member, Kharabela Swain, to remark angrily: ‘‘We are being issued threats about withdrawal of support. Let them go ahead and do it.’’

Later, Shourie dismissed Singh’s threat as Samata’s internal problem, recalling how the party’s leader — he meant George Fernandes — was present at the meeting at 7, Race Course where ‘‘the Prime Minister asked us not once but thrice that is this a unanimous view (on going ahead with the disinvestment policy).’’