Wednesday, August 3 2005 09:45 Hrs (IST) - World Time -

New Delhi: Notwithstanding the Left parties' tough posture against Bharat Heavy Electricals Limited (BHEL) disinvestment, the Government yesterday (August 2, 2005) termed 'as good economics' the proposal to offload 10 per cent of its equity in the Public Sector Unit (PSU) but said no further decision has been taken on divestment.

Finance Minister P Chidambaram told the Lok Sabha, "Monetising a part of ownership at an appropriate time and price is good economics. There can be an opposite point of view. But I would not agree that it (disinvestment) is bad economics," he said, responding to a calling attention of Gurudas Dasgupta (Communist Party of India) and some others on the issue.

In his written statement, the Minister, however, made it clear that Government had not taken any further decision in the matter of BHEL divestment in the backdrop of workers unions and others opposing the sale and that the objections are under consideration.

Chidambaram disagreed with Left members' assertion that BHEL disinvestment proposal was contrary to the National Common Minimum Programme (NCMP) of United Progressive Alliance coalition and maintained that it was within the guidelines of NCMP.

He rushed aside suggestions that disinvestment in profit-making Navratna PSU was like killing the golden goose and that Government should raise resources through a higher tax-GDP ratio.