CCD to consider plan to bar one PSU from bidding for other

MUMBAI: The Cabinet Committee on Disinvestment, scheduled to meet on Saturday on strategic sale of Hindustan Petroleum and Bharat Petroleum, will also consider recommendations of the core group of secretaries to debar public sector companies from bidding for another PSU.
"Among the four to five items on the agenda is the recommendations from the core group of secretaries, headed by the cabinet secretary that no PSU should be allowed to bid for other PSU+, Union Minister for Disinvestment Arun Shourie told reporters on the sidelines of a function organised by the Indian Merchants'' Chamber (IMC) here on Thursday.
He said it was a mere proposal from the core group, which could be agreed or disagreed upon.
The other item is to prepare milestones for divestment in all the cases that we are working on. Once the calender is approved by the cabinet for divestment in 15 to 20 companies it is upon the administrative ministries to adhere. This is the main item on the agenda+, he said adding that BPCL and HPCL would also find mention in the meeting.
Shourie said Deputy Prime Minister L K Advani has clearly emphasised that the set agenda should be strictly adhered to.
To a query, the minister said question of creation of a monopoly in the petroleum sector did not arise in the case of HPCL, BPCL sale as Indian Oil Corporation already has a 55 per cent share in the market.
Asked whether the Centre''s intention to merge MTNL with BSNL would affect their disinvestment, Shourie said "they are not on the list at all. The government has not taken any decision on this".
"My ministry shall present our facts on HPCL, BPCL case and I am told that my colleague Ram Naik has a ''formidable'' presentation ready...he has good reasons for that. We will do our best", Shourie said.
Asked if any decision would be taken on the sale of the two state-owned petroleum majors, a reluctant Shourie said "I don''t know...the Cabinet will meet and decide...very often our proposals have been improved upon as in the case of IPCL by the then finance minister Yashwant Sinha".
He said even if the CCD feels that there were other pressing matters to be addressed instead of HPCL, BPCL, then "we shall do other things".
On Union Coal Minister Uma Bharti''s reported opposition to sale of NALCO, the minister replied in affirmative and said he had met Bharti who had "expressed her reservations on it".
On his meeting with Defence Minister George Fernandes on Wednesday, Shourie said he had a long discussion with the Samata Party president along with BJP Spokesman Arun Jaitley on the need for HPCL, BPCL divestment.
"We have presented our facts and Fernandes has given us a patient hearing. All three of us have also decided not to divulge details of the meeting in public", he said.
Shourie said though the cabinet had given an in-principle approval for divestment of the two oil companies eight months ago the process has not gone ahead much.
"The current moment has become the best opportunity for everybody to ambush (divestment ministry)...earlier my friend Dhindsa did it, now Uma has made a statement against it", he quipped.