Sale of residual shares in CMC, IPCL on: Shourie

NEW DELHI: Disinvestment minister Arun Shourie said today that the sale of residual shares in companies such as CMC, Indian Petrochemicals Corporation (IPCL) and IBP will continue although a strategic sale of the majority holding in PSUs such as SCI would be put on hold till the Supreme Court decides on the legality of disinvestment.
Speaking to reporters in the Capital, Mr Shourie said his ministry would concentrate on the legal option to resolve the impasse arising out of the apex court’s decision to stay the divestment of Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL).
Mr Shourie said the sale of the residual stake in companies like CMC, IPCL and IBP will “go on.�
Asked if the government would proceed with the privatisation of enterprises other than oil PSUs, Mr Shourie said, “Disinvestment in all companies has been stopped for the time being, including Shipping Corporation of India (SCI) and Hindustan Copper as we are facing the same difficulties.�

“Let things be clarified first,� he pointed out.
The bench of chief justice VN Khare and justice SB Sinha had, on November 17, directed that all cases challenging the divestment process be transferred to it, so as to enable the bench to take a holistic view on disinvestment and to examine whether privatisation requires Parliamentary approval and whether it is legally permitted. This could mean that the pronouncement of justices S Rajendra Babu and SB Mathur on HPCL and BPCL would be clarified, if not reviewed.
The Supreme Court had also ordered a stay of all the challenges pending before various high courts. These include challenges to the privatisation of SCI, Hindustan Copper and Burn Standard Corporation, as the Centre sought the transfer of these petitions to the Supreme Court for an authoritative pronouncement.