Naik for minority stake sale

NEW DELHI: Petroleum Minister Ram Naik on Saturday proposed raising about Rs 6,500 crore from minority stake sale in public sector Oil and Natural Gas Corporation, Indian Oil and Gas Authority of India Ltd to meet the Rs 12,000 crore disinvestment target set for the current fiscal.
The proposal made during the marathon meeting of ''key'' ministers convened by Prime Minister Atal Bihari Vajpayee ahead of the Cabinet Committee on Disinvestment (CCD), included sale of 10 per cent equity each in ONGC and IOC and five per cent stake in GAIL, highly placed sources told PTI here.
When contacted Naik declined to divulge details of the meeting saying, "I will not say anything on deliberations of the Cabinet."
Sources, however, said that Naik stated that at current prices, the government could raise Rs 1,045 crore from disinvestment in Engineers India Ltd and Rs 95 crore from Balmer Lawrie.
Naik''s suggestions assume importance in the wake of Disinvesment Minister Arun Shourie''s statement that it would be difficult to meet the divestment target for the year in view of the deferrment of the decision to privatise Hindustan petroleum and Bharat Petroleum.
Opposing privatisation of oil PSUs through strategic sale, Naik said, at present, oil PSUs have highly complex inter-woven marketing arrangement and supplies in entire region would be affected is any one of them is taken out, sources added.
Naik is also believed to have said at the meeting, attended by Deputy Prime Minister LK Advani, Defence Minister George Fernandes and Disinvestment Minister Arun Shourie, that HPCL''s Bhatinda refinery and BPCL''s Bina refinery were committed to the nation by Prime Minister.
"The two projects which together cost over Rs 16,000 crore would not be completed by the private sector," he is believed to have pointed out.
Sources said that Petroleum Minister was of the view that the Government has already ushered competition in the oil retailing sector with grant of marketing rights to Reliance Industries and Essar Oil.
Permission to set up 7549 retail outlets has been granted to the two companies, which is 40 per cent of the current petrol pump strength of less than 19,000.