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Privatisation runs risk of slowdown: Shourie

Economic reforms like privatisation in India run the risk of a slowdown due to the "fragile and fractured political structure" and "resistance" from the administrative ministries, Union Divestment Minister Arun Shourie said.

"We are at a critical moment and the next few months are important. Any shift from the focus on reforms would be a repetition (slowdown) of experience seen during Congress regime in 1984-87 and 1991-mid to 1993, Shourie said at an interactive meeting orgainsed by Indian Merchants' Chambers in Mumbai.

"Prime Minister Atal Bihari Vajpayee has been emphasising on the need for moving ahead with the reforms in the financial sector, but details are not forthcoming," Shourie said.

"The ministries had a control over public sector undertakings for many years and we should not be surprised by their resistance to divestment," he added.

The labour unions and opposition parties were not against privatisation. In fact, Congress governments in states like Punjab, Karnataka and Madhya Pradesh were actively pursuing the divestment agenda, the minister said.

On international implications of slowdown in reforms, the minister said, "neighbouring China has pursued reforms with zeal and has become an economic powerhouse. Difference between us (India) and them is unbridgeable."

Talking about media reports that Defence Minister George Fernandes has expressed concern over security if the oil PSUs were privatised, Shourie said : "The real oil security of our country consists in promotion of alternative fuels. The issue is quite clear, it is not for debate or discussion for us."

He said India imported two-thirds of its oil requirement, and has already opened up exploration sector, "which is much more sensitive as this could give an opportunity to any foreigner to come and nab any portion of your land."

There is also talk of laying a pipeline from Oman to India via Pakistan, "but we in India have not yet done much for promotion of alternative fuels like ethanol or even bio-gas," he added,

"This is despite the fact that we had used ethanol during the World War II," Shourie informed.

The government has also opened up the ports and roadshows are being held worldover for inviting foreign investment in the sector, which means that one is providing complete access to "others" by doing so, he explained.

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