Govt keeps left on divestment road, junks its sell-off plans

NEW DELHI: Having burnt its fingers on the Bhel disinvestment issue, the government has decided to abandon its plans for the strategic sale of 13 more public sector undertakings (PSUs) including Hindustan Petroleum Corporation (HPCL), National Building Construction Corporation (NBCC), Engineers India (EIL), National Aluminium Company (Nalco) and State Trading Corporation of India (STCI).

A Cabinet note prepared by the Department of Disinvestment (DoD) has said that the proposed strategic sale of 13 companies has been ���terminated.��� According to government sources, the decision has been taken on the basis of the White Paper on Disinvestment, which is expected to be tabled in the current session of Parliament.

The finance ministry has already approved the move. The 13 companies were part of the list of PSUs prepared by the NDA government for strategic disinvestment. Other companies taken off the block include Manganese Ore India, Sponge Iron India, National Fertilizers, Rashtriya Chemicals and Fertilisers, Balmer Lawrie, Engineering Projects (India) and Hindustan Paper Corporation, sources said. A Cabinet approval is required to reverse the previous NDA government���s decision.

The companies��� strategic sale was approved by the Cabinet Committee on Disinvestment in the NDA regime. Citing the National Common Minimum Programme, a government source said the companies��� fate will be considered on a ���case-by-case basis���. While PSUs may be allowed to raise money through the IPO route, strategic sale will be considered only for sick PSUs.