Kochi: Several state governments are in touch with the central government to adopt disinvestment procedures, albeit under a veil of secrecy, Union Minister for Communication, Disinvestment and IT Arun Shourie said here.

Even as there has been disagreement on the disinvestment issue from various quarters, states like Punjab, Madhya Pradesh, Chhattisgarh, West Bengal, Tamil Nadu and Karnataka have started implementing the disinvestment process to improve the lot of state public sector units (PSUs), he said.

Speaking on ‘Relevance of Disinvestment’ at a function organised jointly by the Cochin Stock Exchange (CSE) and the Rajagiri School of Management, he said states have been standing guarantee for bankrupt PSUs to raise loans. “The total value of such guarantees may run to Rs 1.40 lakh crore.”

But governments are slowly realising the need for disinvestment, to unleash the productive potential of these organisations, he added. “There is no point in losing money to keep these units under artificial respiration.”

If India has to progress, Shourie said, it has to break from the political stalemate gripping the country. “This can be done by improving public discourse by restricting it to more facts and less allegations. The endless debates should be stopped and it is high time that implementation is initiated.”

As the world moves at a rapid pace with a product going out of market in 18 months and a technology in 32 months, India should liberate itself from established strengths and focus on developing new initiatives, he said. “In the UK, the export proceeds from rock music are higher than that from steel.” In this connection, I compliment Kerala for the successful initiative of marketing tourism with traditional healthcare.”

India has to get more resources from private enterprises to free government expenditure, he added. “This, in turn, can create more jobs instead of cutting down work.” To substantiate his point, he said when Reliance implements its expansion plan in Indian Petrochemicals Corporation it will create more employment opportunities.

Stressing that disinvestment will benefit small investors as well as employees of that company, Shourie said when Hindustan Petroleum Corporation (HPCL) will be sold to a strategic partner, 5 per cent of the equity will be reserved to employees at one-third the market price.

When the prices pick up after acquisition, they will gain, he said. “There will also be a 20-per cent open offer that could attract small investors. If HPCL employees push down the price of shares by going on a strike, they are spoiling their own prospects.”

CSE chairman Justice K John Mathew and Rajagiri School of Management director Fr Jose Alex also spoke on the occasion.