Opposition in the Lok Sabha on Thursday took the government to task for its moves to divest its stake in oil majors -- Hindustan Petroleum Corporation and Bharat Petroleum Corporation -- and asked it to clarify why other public sector firms were not being allowed to participate in their strategic sale and which foreign players were showing interest.
Initiating a special discussion on the issue, CPI-M leader Somnath Chatterjee also sought government's explanation as to how the executive powers were being used to divest these profit-making PSUs, which came into being on Acts of Parliament.
"Parliament, which once created these firms, is not being taken into confidence and is being shabbily treated. Probably, the government fears it would lose the vote," he said.
Stating that the two companies were nationalised by Parliament in 1974 after the then government, which had experienced a war in 1971 felt oil companies should not be owned by foreign firms, Chatterjee said, "I charge you that by privatising, you will create private monopolies and these firms will go to foreigners."
"We have just seen how a country loses its independence as another country think it has the sole powers to ensure democracy and freedom," he said hinting at the US-led war against Iraq.
Divestment Minister Arun Shourie got into a spat with AIADMK member P H Pandian, who from the Speaker's Chair asked him whether Parliament's authority could be ruled out in matters like divestment of public sector oil majors.
"Is Parliament's sanction not necessary for selling of PSUs?" Pandian, who was presiding over the proceedings as a member of the panel of chairmen, asked Shourie in the midst of a heated debate on divestment of HPCL and BPCL.
Pandian's query found favour with the Opposition members but not with Shourie.
Hitting back, Shourie said if Parliament's approval was mandatory, the selling of equity in HPCL and BPCL in 1991 was also illegal.
Pandian said since Parliament's approval was needed for any government spending, authority of Parliament could not be ruled out in the divestment of PSUs also.
