Asked if elections had affected the disinvestment programme and whether government would be able to achieve the target of Rs 10,000 crore set for the year, Sinha told PTI "it has impeded. The fact that we lost the vote of confidence in April and the ensuing elections also have impeded the disinvestment process."

"I don't suspect any shortfall because this year the disinvestment target is only Rs 10,000 crore from internal as well as the global market. Now this is not such a sum of money the Indian capital market will not be able to accommodate, even if it were coming in the next six months," Sinha said.

He made it quite clear that no Indian PSU would be hitting the global depository receipt (GDR) market till August due to holidays in Europe and US. "July and August areholiday months. It is not the right time to go to the market."

However, he said it would not be appropriate to conclude that disinvestment would take place only after the elections. "I have very clearly stated my position. Wherever it is possible we are going ahead and implementing the decisions taken before the Vajpayee government lost the vote of confidence."

Sinha categorically said that government would not take any fresh decision on diluting its stake in any PSU or privatisation in view of the elections. "Wherever fresh decision have to be taken we will do all the preparatory work, keep everything ready so that immediately after elections this work can be taken in hand," he added.

Sinha disagreed that disinvestment in some PSUs like Indian Oil Corporation were being held back due to adverse market conditions. "It is not the adverse market conditions. We are looking at various proposals. It is only the end of June and there is still time to go," he added. Disinvestment in IOC, earlier scheduled forMarch 1999, is still being held back with its global coordinators reportedly advising against hitting the market.

The cash-rich corporation has instead decided to come up with a liberal 1:1 bonus issue during the second half of the fiscal to make its disinvestment more attractive. Asked about conflicting reports on privatisation of Indian Airlines and Air India, Sinha said that there was no reason for uncertainty and the processes were on. While government has taken a decision in favour of strategic partner for Indian Airlines, it was yet to decide the case of Air India.