CGD likely to discuss disinvestment in oil PSUs

NEW DELHI: The Core Group of Secretaries on Disinvestment is likely to initiate discussion on Wednesday on divestment in Oil PSUs HPCL and BPCL besides the issue of allowing three state-owned undertakings to bid to acquire Engineers India Ltd.
At its meeting on Wednesday, the Core Group of Secretaries on Disinvestment (CGD) is likely to consider the quantum of equity to be put on the block in the case of strategic disinvestment in HPCL and public offering in BPCL.
Another item relating to allowing BHEL, GAIL and ONGC to bid for Engineers India Ltd may also come up at the CGD, they said.
Such an approval has become necessary in view of the September 7 decision of the Cabinet Committee on Disinvestment to bar PSUs and cooperatives where the government had more than 51 per cent equity from bidding for the companies put on the block.
In case of an exception the concerned ministry will have to take Cabinet''s clearance to allow a particular PSU to participate in bids.
Other items that may be taken up include scrutinising transaction documents for Instrumentation Ltd, and also taking a view on the Hindustan Cables Ltd, which has failed to enthuse bidders.
The CGD meeting would take stock of shareholders and share purchase documents for ICVL and also clear the financial bid for NEPA.
In NEPA, the government holding is currently at about 97 per cent and 51 per cent would be divested to a strategic partner.