In its action taken report tabled in the Lok Sabha on Monday, the committee noted with dismay that the government had taken the decision to disinvest its equity in the HTL when the standing committee on communications was seized of the issue.

Stressing that such a decision on the part of the government went contrary to well established parliamentary traditions and norms of functioning, the committee asked the authorities to review the matter. "The government should review the matter and give up altogether the proposal of disinvestment and submit a report to the committee", the report said.

The committee in its earlier report had noted that the disinvestment commission had recommended 100 per cent disinvestment in HTL, or alternatively sell 50 per cent shares and if none of the above options was feasible, to effect a straight sale of the assets of the company through competitive bidding.

The committee had observed that HTL was on the fast track to indigenise major components and surplus workforce was planned to slashed through golden handshake and superannuation of the staff. The company was also improving its financial performance. Hence, the committee had recommended to turn around the company first before decising its future.

The ministry in its action taken note has stated that the company was making profit continuously except during 1996-97. There are only 288 surplus employees.

The committee in its report also disagreed with the government move on the ITI. In its earlier report, the committee had held that in case the majority shareholding of the government in ITI Ltd was disinvested, the DoT would not be able to support the company. The government, however, held that the ITI Ltd would be able to sustain itself even without the DoT's support.

Expressing its surprise over the government's statement, the committee in its action taken report said that the government's observation was not substantiated by fact as to how the ITI would be able to sustain itself without the DoT's support. The committee held that the DoT should continue to extend its support to ITI.