Disinvestment: EIL next in the line

NEW DELHI: The government will privatise State-run Engineers India Limited this financial year with Disinvestment Ministry withdrawing its reservations on selling the project consultancy firm following a decision on sale of the government equity in oil PSUs HPCL and BPCL.
The decision, taken at the meeting of the Core Group of Secretaries on Disinvestment today, would now be sent to Cabinet Committee on Disinvestment for ratification, sources said, adding this would pave the way for inviting financial bids for sale of 51 per cent government equity in the next few weeks.
CGD is also believed to have favoured allowing public sector companies like ONGC and Bhel to bid for Engineers India Ltd on the ground that the September 7 decision to bar PSUs from disinvestment process would be difficult to implement retrospectively, Government sources said.
It, however, decided to refer the issue of divestment in Balmer Lawrie to the Cabinet Committee on Disinvestment as Disinvestment Ministry''s proposal for its sale as a single entity was opposed by Ministries of Finance and Petroleum which wanted it to be segregated into separate business units and sold separately, they said.
Contrary to reports, the CGD did not initiate discussions on disinvestment in HPCL and BPCL till Attorney General gave his opinion on the legality of privatising the PSUs which were formed by an act of Parliament.
Sources said the Petroleum Ministry''s proposal for stripping EIL of Rs 310 crore special divident before sell-off will be debated at the Inter-Ministrial Group meeting before being taken to CCD.