Sell-off: States eager to join slimming Centre

Rajiv Nagpal & Tina Edwin NEW DELHI: Disinvestment is no longer the Centreâ€™s core competence. Just about every state government has put a few public sector enterprises on the block for either 51% or more divestment of ownership. Gujarat, Punjab Karnataka and Andhra Pradesh may have the early starter advantage. But states such as Himachal Pradesh and Orissa or for that matter Assam are not too far behind. Gujarat â€” still fresh from the image battering it received post Godhra â€” is leaving no stone unturned. The state has been courting consult-ants and merchant bankers to accelerate its the sell-off programme. Sources in Gujarat government told ET that chief minister Narendra Modi is understood to have instructed his men to get disinvestment process accelerated in an effort to salvage the stateâ€™s image among in-vesting community. Said the source: â€œWeâ€™ve had a meeting on the issue of disinvestment and decided to restructure PSUs prior to their sell-off.â€� Sources added that government has asked a few merchant banks and consultants to work out a road-map for disinvestment of state owned enterprises. Gujarat has identified Gujarat Industrial Power Corporation, Gujarat Narmada Fertiliser Corporation and Gujarat State Fertiliser Corpora-tion as first few to be taken up for privatisation according to sources. In Punjab, the state Disinvestment Commission is working overtime to finalise a sell-off list. The Commission has already submitted an in-terim report to Amrinder Singh government. The final report should be ready by July. Restructuring exercise has begun in several PSUs and voluntary retirement scheme is to be announced for some units to rationalise manpower prior to their sell-off. The sell-off list would see names such as Punjab Tractors, Punjab Alkali, several subsidiaries of Punjab State Industrial Development Corporation. In Tamil Nadu, Tamil Nadu Newsprint Ltd and Tamil Nadu Telecom may soon be looking for suitors. Andhra Pradesh proposes to sell about 20 units this year including some sugar mills and spinning. Karnataka is looking for buyers for Mysore Lamps and privatisation of power distribution. Maharashtra government is planning early privatisation of Meltron, Maharashtra State Electricity Board, Maharashtra State Road Trans-port Corporation and Maharashtra Small Scale Industry Development Corporation. Madhya Pradesh government is scouting for a buyer for 65% stake in Optel Telecommunications. But it is action in smaller states thatâ€™s catching everybodyâ€™s attention. Assam, for example, recently announced that it intended to sell Assam Tea Corporation, lock stock and barrel. In Himachal Pradesh, the state government has decided to disinvest five properties of HP Tourism Development Corporation. Orissa has invited express of interest for valuation of IDCOL Cement Ltd and Kalinga Studio Ltd.

Sell-off: States eager to join slimming Centre

Disinvestment is no longer the Centre’s core competence. Just about every state government has put a few public sector enterprises on the block for either 51% or more divestment of ownership.

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