ONGC share auction example of govt's 'policy paralysis': BJP

New Delhi: BJP today described the handling of auction of ONGC shares as another example of government’s “policy paralysis” and alleged that shareholders of LIC, which was roped in to buy the over-priced shares, have been unduly penalised.

“BJP holds the UPA government responsible for the inept handling of the auctioning of government’s shares in the ONGC. The entire process is typically symbolic of the way in which decision making happens in the government. There is a policy paralysis,” party spokesperson Nirmala Sitharaman said.

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The opposition alleged that decisions taken by the government have been ad hoc, without comprehensive plans, and there is “patch-work and haste” in administration, which have

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resulted in “huge financial loss and credibility crisis”.

Government had gone in on for divestment of ONGC shares but had to depend on LIC to sell these in the absence of other bidders.

“Analysts and the markets have started referring la affaire ONGC as a fiasco. Public sector insurance company LIC was drawn in to save the honour of the government in a desperate situation. In other words, the LIC policy holders are being penalised as the government has used their money to buy the over-priced shares of the ONGC,” Sitharaman said.

She maintained that cross holding is “a bad idea” and cannot be encouraged. Bridging fiscal deficit through these methods will not succeed and cannot be justified.

“Divesting in the ONGC in this haste is neither going to add to its efficiency level nor will the money received by this process be adequate to meet the growing deficit. However,

as it is, the LIC share holders are sure to be the losers,” she added.

PTI