Roadblock: Ministry drops HPCL, BPCL from this year’s selloff list

NEW DELHI: THE disinvestment ministry has dropped HPCL and BPCL from a list of around 16 disinvestment transactions it hopes to complete this year.
The note was prepared early this month for a meeting of the committee on public undertakings and provides an insight into the ministry’s view of disinvestment prospects in the current fiscal.
Nalco has, however, been retained in the list although the government had put plant visits, which form an integral part of the due diligence process, on hold around the time the note was circulated to the members of the committee.
Maruti Udyog’s public issue for 36 lakh shares, representing 25% of the government’s equity holding in the company, is also scheduled to be completed by March ‘03.
The note also reflects the dissonance in public statements made by the disinvestment ministry and other ministries and views expressed privately.
For instance, the ministry recently said it was putting Engineers India privatisation on hold till there was a decision on privatisation of HPCL and BPCL. Yet, EIL is one of the companies where the transaction is to be finalised this year.
Similarly, on SCI privatisation, shipping minister V P Goyal said at a press meet that the transactions were being delayed till such time the disinvestment ministry is confident of fetching a good valuation for the shares. But SCI is in the list of companies that would be disinvested this fiscal. The transaction documents are nearly finalised and is awaiting clearance from Cabinet Committee on Disinvestment.
National Fertilisers makes it to the list although its sell-off is on hold due to final clearance of the long-term fertiliser policy as well as gas pricing policy.
A fertiliser policy of sorts, without any clarity on freeing retail prices, has been cleared by the concerned Group of Ministers but even that incomplete package has not been cleared as yet by the Cabinet Committee on Economic Affairs.
Other transactions the government hopes to complete this year include State Trading Corporation of India, Balmer Lawrie & Company, Sponge Iron India, Manganese Ore India, Hindustan Organic Chemicals and Engineering Projects India.
The ministry also expects to complete sale of NEPA, Instrumentation Control Valves, Tungabhadra Steel Products, four hotels of Indian Tourism Development Corporation and two hotels of Hotel Corporation of India.