Govt to sell rest of CMC, VSNL soon

NEW DELHI: The government is likely to sell its residual stake in privatised firms like VSNL and CMC to the strategic acquirers soon, Disinvestment Minister Arun Shourie said on Monday.
"That has certainly been a proposal in our mind. We have done some work on VSNL in telecom because government is fast loosing the value of its holdings and in another case in CMC, it is a gaining", he told reporters here on the sidelines of a function on a stamp release function.
"Where the companies have stabilised and the government is satisfied that under the new management, the companies are doing well, there is no reason for the government to continue", he said.
Government currently holds just over 26 per cent in CMC and VSNL which were last year sold to the Tatas. At current market prices, the stake sale, the two companies could fetch the government close to Rs 1,100 crore.
"So for that reason, we have examined the cases -- CMC and VSNL and I hope that this matter would come up before the CCD in one form or the other", he said.
As per the agreement to sell its stakes to strategic investors, the government has a put option to sell its residual stakes within three years of the sale.
"IPCL is also one of the concern, but we have to study those cases which are maturing and I hope to raise the general question of policy and may be one of the case will be ripe, may be CMC", he added.
Whether CMC will be the first company where government will sell the residual stake first, he said, "On that I am not sure as three-four notes are being prepared and which one will get through the Inter-ministerial group, Committee on Secretaries (CoS) and ripe enough to come to the decision, it will depend on that process", Shourie said.
And there may not be time to prepare a general policy paper as it would involve another round of consultations. So if even one case comes up, eventually the general policy issue will be considered, he added.
Whether CMC will be the first company where government will sell the residual stake first, he said, "On that I am not sure as three-four notes are being prepared and which one will get through the Inter-ministerial group, Committee on Secretaries (CoS) and ripe enough to come to the decision, it will depend on that process,� Shourie said.
And there may not be time to prepare a general policy paper as it would involve another round of consultations. So if even one case comes up, eventually the general policy issue will be considered, he added.