The move is believed to be a fallout of the discussions that took place in the PM's meeting with his Economic Advisory Council yesterday. The Finance Ministry is also believed to have pushed for the PM heading the Group of Ministers, given the sharp dissensions in the Cabinet over the extent, and pace, of disinvestment. Moreover, in the past few weeks, the process had got embroiled in controversies over what particular method needs to be followed. The fact that some of the PSUs such as IOC have opposed any disinvestment at the current market prices has also made it important that the Group of Ministers constituted be apowerful one.

Nor has any action been taken on the Disinvestment Commission's recommendations that 4 units be closed down. Interestingly, while the BJP's own industry minister Sikandar Bakht had said that 8 chronically sick units such as the Cycle Corporation of India were to be closed down -- the Cycle Corporation's wage bill is 14 times its turnover and its losses 30 times its turnover.