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Assocham slams government handling of divestment

BS Corporate Bureau

The Associated Chambers of Commerce and Industry of India (Assocham) has criticised the government for its handling of the divestment process and said there is need for greater transparency and pragmatism across political parties.

"We are very disturbed with the developments in Bharat Aluminium Company (Balco). Though the government has tried to bring in transparency, there is need for greater understanding amongst the ruling parties (both at centre and state level) as well as the Opposition to continue with the divestment process," Assocham president Raghu Mody said.

"It has become fashionable for some parties to object. The state governments must understand that if the public sector units do not perform the only way out is for them to divest", Mody said.

Assocham is expected to meet divestment minister Arun Shourie on the issue on Wednesday.

Mody said that though the Budget was appreciated across the industry, there were some grey areas including tourism which despite its huge potential for employment and foreign exchange had been left out in the Budget, he said.

The Assocham president was also critical about the time taken to highlight issues affecting the industry.

"We face unimaginable problems in taking up issues and bringing them to the government's notice. It is very difficult to convince them," he said.

Mody said that though the government has initiated the second generation of reforms, the first generation of reforms has not yet been implemented at the grassroot level.

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