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PM keen to resolve dispute over divestment

Prime Minister Atal Bihari Vajpayee on Monday held a high level meeting with key Cabinet colleagues, including Defence Minister George Fernandes, in the wake of open airing of disagreement on divestment issues especially those relating to oil public sector units.

The meeting came a day after Divestment Minister Arun Shourie met Vajpayee and BJP came out openly supporting the government's divestment programme. Fernandes and Finance Minister Jaswant Singh claimed after the meeting that there were no differences among ministers on divestment issues.

Fernandes, who is also president of Samata Party, however, told reporters later: "We should examine how far down the road we have reached. Whether divestment is proceeding in the right direction or whether any course correction is needed."

"These are questions any political party wants answers to and they need to be answered," he said but emphasised that there was no fighting while media has a different thing to say.

Asked about the meeting with Vajpayee, which was also attended by Deputy Prime Minister L K Advani and Jaswant Singh, Fernandes said that the issues of strategic sale in PSUs and divestment in oil companies were discussed.

However, the defence minister, who wants a small group of ministers to go into the divestment issues, declined to give details of the deliberation saying these were 'confidential matters.'

The prime minister is also likely to hold a meeting of these ministers, which would also be attended by Petroleum Minister Ram Naik and Shourie, on Saturday before the CCD meeting.

Briefing reporters after the meeting Finance Minister Jaswant Singh said: "We discussed many topics including economic policy, foreign policy, some security related matters and also divestment."

Singh denied that there was any tussle between the Cabinet ministers over the divestment process, adding that the ministers spoke on various matters.

He said other matters which came up for discussion included the
UTI bailout package and its outcome, and also the possible aid for the Industrial Finance Corporation of India.

On whether the upcoming meeting of CCD on September 7 could see a consensus on divestment of Hindustan Petroleum and Bharat Petroleum, he said it would be unfair to guess the outcome of the meeting.

Meanwhile, informed sources said that Vajpayee would seek to evolve a consensus before the CCD meeting on the issues raised by both Shourie and Naik on divestment of the two oil PSUs.

While Shourie has been pitching for strategic sale route, Naik had been insisting on public offer to fund the on-going refinery projects ahead of privatisation of the two oil corporations.

Shourie had earlier said that corporate rivalry had also created roadblocks for the divestment process.

Fernandes, meanwhile, denied reports that he had insisted on his presence during the meeting of CCD which had reportedly led to deferment of the scheduled meeting of August 27 for the fourth time in recent weeks.

Even though BJP came in support of the government's divestment policies, its general secretary Arun Jaitley had said on Monday that it was best left to the collective wisdom of the government as to which PSUs should be divested and what methodology be adopted.

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