Finance Minister P Chidambaram on Thursday made a double pitch for public sector companies. First he urged private sector companies to enter into joint venture partnership with PSUs, and second, he invited India Inc to participate in the government's divestment programme.

Chidambaram also said that a Board for Reconstruction of Public Sector Enterprises would soon be set up.

The Divestment Development: Complete Coverage

"BRPSE will take up some companies for their restructuring... some companies will look for private strategic joint ventures ...some companies will be closed down or sold," the FM said at the Confederation of Indian Industry national conference.

The minister said the proposed investment commission would not be a regulatory body but a proactive entity that would attract foreign and domestic investment, which was key to higher growth.

Chidambaram said the government has already announced setting up of a National Manufacturing Competitiveness Council and second to come is the BRPSE.

Highlighting the emerging opportunities for private sector in the country, he said when government commits public funds in social sectors, the space for private sector is actually enlarged in sectors like steel, coal, IT and telecom.

Chidambaram said, "Space (for private sector) has enlarged in the last six months and I want you (India Inc) to occupy it aggressively."

He also said that India Inc needs to step up investment in the social and agriculture sector.

"It is in these areas of investment, we have faltered," he said, adding public spending in social sectors was not "subsidy-driven", but was "investment-driven".

Urging industry captains to step up investment, he said the Gross Capital Formation was at 26.4 per cent of GDP in 1994-95 and 27.3 per cent in 1995-96 but declined by 2 per cent thereafter.

"We have to raise it to 27.3 per cent and then over 30 per cent," he said.

In this context, government-led efforts to boost investment could be inadequate, he said, adding that industry-led efforts could reap fruits.

Chidambaram said the new Commission, which will mark a "sharp departure from past practice", would be headed by and composed of persons from India Inc and not by bureaucrats and government servants.

"One of you will indeed be the chairman of the Commission," he said and invited young professionals to be part of the Commission for 2-3 years.

Chidambaram said there was a need to unlock capital from unproductive assets to spur investment.

"India has a huge capital locked up in unproductive assets. That capital has to be unlocked," he said, adding the

Investment Commission will assist the country in doing so.

He said the country requires massive investment in manufacturing, services and agriculture in the next 4-5 years.