Disinvestment panel wants sale of Hooghly Docks

NEW DELHI: The Disinvestment Commission on Friday recommended privatisation of Hooghly Dock and Ports by inducting a strategic partner after obtaining statutory clearances. In its 17th report submitted to government recently, the commission said that government should offload its entire stake in the company to a strategic partner at the earliest after finalising a restructuring package in consultation with the bidders. Expressing concern over the problems faced by government in privatisation of oil majors, the commission noted that the company which was nationalised in 1984 through an Act of Parliament should be privatised only after necessary legal clearances were obtained. The Disinvestment Ministry had run into problems over privatisation of Hindustan Petroleum and Bharat Petroleum which were also nationalised and had to seek the opinion of the Attorney General before proceeding further. It, however, noted that government should incorporate conditions in the shareholders pact to ensure that the company fulfils its existing obligations with respect to orders being executed. The commission also suggested that company should be closed in the alternative if the government fails to find any buyers adding that there was no rationale for government to remain in the company as it was not strategic. The company has an authorised share capital of Rs 300 crore and employs over 800 people. The commission also recommended sale of Rajasthan Drugs and Pharmaceuticals, a subsidiary of loss making central PSU Indian Drugs and Pharmaceuticals in which the latter holds 51 per cent stake. It said that the Centre's entire stake in the project should be offered to strategic partner while allowing RIICO, the joint venture partner to tag along with it. However, it noted that IDPL, being a sick company, BIFR approval for the sale would be required. RDPL which was set up to manufacture life saving drugs employs 154 personnel and has an authorised share capital of Rs 2 crore. In case of National Small Industries Corporation set up to provide support for growth and development of SSIs, the commission recommended that no disinvestment should take place. It, however, recommended that corporation should discontinue financing of activities by either selling the same or transfer the loan portfolio to other investors like the Small Industries Development Bank. Secondly, it said that technical service centres should be hived off to private agencies or state government failing which sale of fixed assets should be undertaken. Thirdly, NISC should concentrate on marketing activities with organisational and financial restructuring, develop expertise and capabilities in marketing by inducting professionals.

Disinvestment panel wants sale of Hooghly Docks

The Disinvestment Commission on Friday recommended privatisation of Hooghly Dock and Ports by inducting a strategic partner after obtaining statutory clearances.

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