New Delhi: Inviting private sector to participate in the disinvestment programme, Finance Minister P Chidambaram today (Oct 28, 2004) said a Board for Reconstruction of Public Sector Enterprises (BRPSE) would be set up soon.

Asking private companies to enter into joint venture partnership with PSUs (Public Sector Undertaking) and bid for ailing Government-owned companies, he said, "BRPSE will take up some companies for their restructuring, some companies will look for private strategic joint ventures, some companies will be closed down or sold."

"This will provide you (India Inc) the opportunity to take up the challenge," he said at CII (Confederation of Indian Industries) national conference.

The Minister said the proposed investment commission would not be a regulatory body but a pro-active entity that would attract foreign and domestic investment, which was key to higher growth.

Chidambaram said the Government has already announced setting up of National Manufacturing Competitiveness Council and second to come is the BRPSE.

Highlighting the emerging opportunities for private sector in the country, he said when Government commits public funds in social sectors; the space for private sector is actually enlarged in sectors like steel, coal, IT and telecom sectors.

Chidambaram said, "Space (for private sector) has enlarged in the last six months and I want you (India Inc) to occupy it aggressively."

He also said that India Inc needs to step up investment in the social and agriculture sector.

"It is in these areas of investment, we have faltered," he said, adding public spending in social sectors was not "subsidy-driven", but was "investment-driven".

Urging industry captains to step up investment, he said the Gross Capital Formation (GCF) was at 26.4 per cent of GDP in 1994-95 and further to 27.3 per cent in 1995-96 but declined by 2 per cent thereafter.

"We have to raise it to 27.3 per cent and then over 30 per cent," he said.

In this context, Government-led efforts to boost investment could be inadequate, he said, adding that industry-led efforts could reap fruits.

Chidambaram said the new Commission, which will mark a "sharp departure from past practice", would be headed by and composed of persons from India Inc and not by bureaucrats and Government servants.

"One of you will indeed be the chairman of the Commission," he said and invited young professionals to be part of the Commission for 2-3 years.