It has become mandatory for all profit making Public Sector Firms (PSU) to make at least 10% of their equities public and relevant rules have been duly amended by the Government to free up the money thus earned, by divesting parts of its stake, for Social Sector spending without having to borrow or add to the fiscal deficit.

Rules governing the use of divestment proceeds thus stand suspended for a 3 year period beginning April 2009. The actual amount of money available would depend on how much and at what price the Government divests and, obviously, this process would be carried out “at an appropriate time when market is favourable”.

So much for the sunny side of the story. On the gloomier side is the news that this money, from disinvestment, will not be routed through the National Investment Fund for the next 3 years. Once again, a rule based system conceived by the Government has been put on hold owing to political exigencies. It is of concern to note that carefully conceived laws and rules are to be set aside, even for short spans, in the face of a problem and at the cost of the country”s credibility.