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Manmohan flays govt over selloff, UTI bailout

Former Finance Minister Manmohan Singh on Tuesday criticised the government's reform process warning that divestment without controlling fiscal deficit can lead to 'disastrous results' and the Rs 14,561 crore (Rs 14.561 billion) bailout package for UTI was an 'under-estimate' of the requirement by the beleaguered fund.

"Congress is not against divestment of PSUs. But the government is not very clear on it. Divestment without controlling fiscal deficit can lead to disastrous results as it was the case with Argentina," Singh, who is also the leader of Opposition in Rajya Sabha told reporters on the sidelines of a book release function.

Referring to the differences between Samata Party leader George Fernandes and other BJP minister, he said 'different ministers have different views on divestment.'

Singh said the sell-off of PSUs had loopholes in areas like shareholders' agreements.

Referring to the row over Videsh Sanchar Nigam Ltd, he said: "It showed that strategic sale does not mean that government interest diminishes."

Singh also raised doubts about splitting of Unit Trust of India and selling off UTI-II comprising of NAV-based schemes to private players, saying "let's see whether they are able to privatise it."

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