"It's Unfair To Exclude A Large Chunk Of India Inc"

How will the SEBI ban hamper disinvestment?
As far as Balco is concerned, the deal is already over. The SEBI order thus will have no effect on it. For prospective deals, we will keep the SEBI order in mind on two counts. Firstly, as to what it shows us about the character of the company and its business, and secondly, how it will have its impact on a company while raising resources. All bidders submit a business plan for a psu's revival. If a tainted party can convince us that they can raise capital even without going to the capital market, it will be okay. Even after the ban, there will be other ways of accessing capital like through ADRs, GDRs. They can also raise capital from the markets through their subsidiaries and other group companies. Moreover, one is banned for equity, but not for loans from the market.

So the bids of the three tainted companies will not be scrapped?
Look, there are innumerable cases going on against various Indian corporates. For example, SEBI is looking into 353 such cases. The CBI is investigating 760 firms. The list just goes on. We must then exclude major chunks of corporate India from the entire exercise and only foreign companies will get an opportunity. That is also not fair. Similarly, in the cases of appeals filed in the Central Excise department in 1998-99, 78 per cent have gone against the government. In customs, it is 68 per cent. For all prospective deals, the department will formulate a set of rules in the next 15 days.

Will CSFB be removed from the post of global advisor to the VSNL deal?
Global advisors are the eyes, ears and the conscience of the government. In their case, the criteria will have to be much stricter. And if any conviction or ruling reflects on the character of the company, I will take a harsh measure. In any case, in VSNL we also have SBI Caps as an advisor and since the bidders are all Indian parties, they are likely to know them better.

Will rebidding take place in Indian Airlines?
We cannot just focus on one or two companies. We'll make a general rule and then we will see when the matter arises.

Why can't we offload a psu's stake in the market instead of resorting to strategic sale?
Between 1991-97, we have done exactly that but the character of those companies hasn't changed. It is the same when it comes to the management and the work culture. Such an experiment has just not worked with GAIL or Concor.

But the government has been missing targets by miles?
The target figures are just indicative. So what if we don't match up? If I take an aggressive stance, then the Opposition will cry "distress sale." I am patient on this.