‘Parliament OK only if you divest more than 51 pc’

The Left has opposed the proposed 10 per cent reduction in the Government’s 67.72 percent holding in Bharat Heavy Electricals Ltd, fearing its privatisation with subsequent offloading.

The Cabinet’s direction has also been sought on keeping the Government from interfering in a negative list of areas.

The list includes decisions relating to pricing/distribution policy and exports/imports and insistence on CPSEs furnishing information considered commercially sensitive by their boards while replying to questions raised by Parliament or its committees.

However, DPE sources clarified that these proposals have been slipped in for Cabinet deliberations and firm proposals would be submitted on their advisory.

What has been put in black and white for Cabinet approval by the DPE is more autonomy to the Navratnas and Miniratnas than what it had earlier proposed.

Based on AGE recommendations, the DPE has proposed enhancing the investment limit in subsidiaries and joint ventures by the Navratnas and Miniratnas to 15 per cent of the net worth, subject to a ceiling of Rs 1,000 crore for a Navratnas and Rs 500 crore for Miniratnas.

The previous proposal was to raise the limit to 10 per cent, subject to a ceiling of Rs 1,000 crore, from the existing 5 per cent and Rs 200 crore for Navratnas and Rs 100 crore for Miniratnas.

Collectively, the investment limit has been retained at 30 per cent of the net worth. The existing investment in all subsidiaries and joint venture projects together is 15 per cent.

There is also a change in providing budgetary support to vanguard PSEs. Instead of keeping them away from receiving budgetary support, the proposal is to pump government money to implement developmental activities, distinct from providing funds for consumption requirements.

It plans to do away with the provision of taking away Navratna and Miniratna status whenever these CPSEs seek government guarantee.

Mergers and acquisitions without prior approval of the Government would also be permitted for these enterprises, provided it is as per the growth plan and in the core area of functioning.