Privatisation of HPCL, BPCL may be deferred

NEW DELHI: The controversial move for privatisation of oil PSUs -- HPCL and BPCL -- appears to have been shelved for the time being with a high-level meeting chaired by Prime Minister Atal Bihari Vajpayee failing to evolve a consensus on the issue.
At the informal meeting attended by senior ministers, it was understood to have been decided that the matter could be deferred for three months, sources said adding a formal decision was likely to be taken at the meeting of the Cabinet Committee on Disinvestment (CCD) in the night.
Defence Minister George Fernandes and Human Resources Development Minister Murli Manohar Joshi, who are believed to have opposed strategic sale of equity in PSUs and consequent change of management, are likely to attend the CCD meeting as special invitees.
Vajpayee''s meeting, the second during the week, for evolving a consensus on the controversial disinvestment issues was attended by Fernandes, Petroleum Minister Ram Naik, Disinvestment Minister Arun Shourie and Deputy Prime Minister L K Advani.
Following the presentation made by Naik and views expressed by Fernandes and Shourie, Vajpayee is believed to have said that the matter could be deferred for three months for reviewing various issues.
The CCD is now likely to discuss the issues relating to privatisation of some ITDC hotels like Ranjit, minority sale of equity in Indian Oil, Oil and Natural Gas Corporation and Gas Authority of India besides reviewing the disinvestment progress made so far.
Sources said Joshi, who is believed to have met Vajpayee earlier this week to express his views on the current disinvestment policy, had desired his presence at the meeting. Fernandes had also expressed similar views late last month when he wrote a letter to Vajpayee raising various issues relating to disinvestment.
Sources said the presentation made by Naik centred around three key aspects relating to privatisation of oil PSUs -- strategic sale, allowing PSUs to participate in disinvestment process, and completion of the ongoing refinery projects.
None of the Ministers present at the morning meeting were ready to comment saying the issues would now be taken up at the CCD.