'Russia, China Created Oligarchs, Princelings Via Disinvestment'
Q. The Modi government's disinvestment is criticised for transferring PSUs from one arm of the government to another, rather than privatise. What is the philosophy behind the process?
Post Russia's failure, one should be looking at the economic impact of opening up these companies, getting them to own by those that can unlock their potential. I guess that should be the bedrock. That is why the name of the Department of Disinvestment was changed to the Department of Investment and Public Asset Management. Getting investments and managing assets of public companies so that their value is unlocked is the bedrock which keeps you clear of ideological questions that can create mental blocks.
On the other side, you will see that many public sector undertakings were freed up to take most operational and very large investment decisions through a board driven mechanism. Big companies like ONGC, IOCL,
