All roads lead to the Parliament

IIPM BUSINESS & ECONOMY
The government’s plan to perk up unprofitable public sector units (PSUs) with help from a private partner has been made more complex. The law ministry has passed a fresh order, which calls for Parliamentary approval on the matter even before the government can short list potential partners. The change has already been communicated to the ministry of heavy industries (MHI). This recent notification could act as a roadblock for the government’s attempts to revive PSU disinvestments. The law ministry backs its decision by claiming that any alteration in the basic character of a PSU calls for a green signal from Parliament.

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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