New Delhi: Prime Minister Manmohan Singh today (Sep 4, 2004) said there was ample scope for disinvestment even without changing the character of the public sector enterprises (PSE) into that of private sector.

"There is no ideological aversion to disinvestment. If there are profit-making enterprises that make reasonable profits in competitive conditions there is no earthshaking reason for disinvestment," Singh said at a press conference.

"As regard disinvestment, 'yes', but not to the point to change their character into private companies," he said.

There is ample scope for disinvestment even under the stated policy of the United Progressive Alliance (UPA).

The Prime Minister hoped the newly constituted Board for Reconstruction of Public Sector Enterprises "does not become an institution for perpetuating the losses-making character of PSEs."

The Board will identify the state-run firms which can be revived and those which cannot be revived. "The best course (of action for these PSUs) will be to sell them off," he said.

"Of course, we will have to protect the interests of workers involved (in the companies being closed down)," Singh said.