New Delhi, July 10: The Disinvestment Ministry has proposed that funds from sale of state undertakings should be set aside for development of backward areas under the draft guidelines circulated this week for natural asset companies. Under the new draft circulated earlier this week, funds from privatisation would be earmarked for promoting development in backward areas, sources associated with the process said.
The ministry has also suggested incorporation of minimum value addition norms for prospective bidders to encourage diversification and future development.
However, sources admitted that the issue being contentious it would be left to the government to prescribe exact figures for the same.
Sources added that such norms should be best imposed at the initial bids stage rather then introduce them at a later stage.
Bureau Report