The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has welcomed the government’s decision to disinvest 10% equity each in mining companies Coal India Ltd and Hindustan Copper Ltd.
ASSOCHAM secretary general DS Rawat said that the partial disinvestment is expected to help obtain the necessary management and financial resources of the private sector towards making these units withstand competition.
He said dilution of the government share holding in the public sector has been contemplated for a long time. In line with this thinking the government has decided to partially disinvest its state in the two PSUs, Rawat said, adding that the time is also ripe as the economy has successfully weathered the recent recession.
However, the Chambers suggested that the proceeds of the disinvestment should be used in sectors like education, infrastructure, and health that make a long term impact on the economy.
