CCD to decide on eligibility of bidders for HPCL

NEW DELHI: The Cabinet Committee on Disinvestment, chaired by Prime Minister Atal Bihari Vajpayee, is likely to decide on the eligibility of suitors and the quantum of the government stake to be shed from the oil PSU Hindustan Petroleum Corporation (HPCL).
Sources said the CCD, the dates for which had not yet been decided, would be preceded by a meeting of Core Group of Secretaries on Disinvestment which may recommend quantum of equity to be offered to strategic partner, public and employees.
Meanwhile, Disinvestment Minister Arun Shourie declined to comment on reports that Indian companies would not be allowed to bid for Government shareholding in HPCL. His department Secretary Pradip Baijal said he was not aware of any such proposal.
Highly placed sources said the informal meeting of senior ministers convened by Prime Minister Atal Bihari Vajpayee last week, had only decided on the mode of divesting the government shareholding - strategic sale for HPCL and public offering in case of BPCL.
Meanwhile, Petroleum Ministry is believed to be preparing a case for allowing ONGC to bid for HPCL.
The Ministry, which received a formal request from ONGC on Thursday, is likely to advocate for the exploration firm on grounds that acquisition of HPCL was essential to its business plan of becoming a vertically integrated oil firm, sources added.