'Divestment freeze not to hit reforms'

In a bid to dispel fears that the government decision to put on hold divestment in PSUs could impact the economy, the Planning Commission on Friday said divestment is not the core of economic reforms.

"I have never felt that divestment is core of reforms. The reform agenda is very very wide ranging," Planning Commission deputy chairman Montek Singh Ahluwalia said.

"Quite frankly, I do not think that PM's statement would prevent moving on wide ranging of things which are absolutely crucial," he said.

Ahluwalia said the approach paper to the 11th Plan talks of a whole lot of reforms in agriculture like greater public investment, new ways of organisation, changing laws and greater role of the market.

"None of these have anything to do with divestment," he added.

The Divestment Development