Speaking at a seminar on divestment, organised by the India International Centre on Saturday, he said, "By the middle of next year, more activity on divestment would be visible." By that time, "conspicuous cases like AI and IA would be behind us."

Mr Shourie discussed various aspects of public sector undertakings (PSUs) and their privatisation. Calling the reports of the erstwhile Disinvestment Commission of "first order," he said that the prime focus is on them. "The reports are acted upon. They are the starting point in every case."

There has been a shift in government policy on divestment, he said, adding that the focus has shifted from minority stake sale to strategic sales.

There could be other modes of divestment, but strategic sale is the general practice.

After the completion of every privatisation, the department of disinvestment would send "every paper" to the CAG, as a single scandal can scuttle the divestment process, the minister said.

Discussing the problems in divestment, Mr Shourie pointed out that lease deeds of several of ITDC hotels are not available. "I have sought the help of urban development minister Jagmohan in that regard."

To the objection raised on why only the profitable PSUs are being sold and not the loss-making ones, he said such PSUs do not find any buyer. The loss-making units can be sold by asset-stripping, and that is a "long, tortuous process."

To the suggestion of handing over PSUs to trade unions, Mr Shourie said he is not opposed to the idea, but the proposal should be backed by financial muscle.

Criticising the way of PSU functioning, he said that the public sector has become process-oriented and ceased to be result-oriented. "Trivia is written to death, and beyond."

The minister expressed concern over the sad state of affairs at sick mills. The NTC mills that are closed for three or more years are costing the public exchequer an amount worth Rs 600 crore.