Strategic sale in HPCL, public offer for BPCL

NEW DELHI: The government on Monday announced sale of equity in HPCL to a strategic partner and divestment in BPCL through public offer amid strong protest in Parliament with the Congress and other Opposition parties questioning the legality of sell-off in the two nationalised oil PSUs.
Strongly reacting to the government decision, Opposition members staged a walkout in the Lok Sabha while the Rajya Sabha was abruptly adjourned amid acrimonious scenes even as Disinvestment Minister Arun Shourie asserted that disinvestment in the two companies could be carried through executive order without seeking any legislative changes.
Later, Shourie told reporters that all the issues were examined and there was no restriction relating to sale of equity in the two oil PSUs where successive governments had lowered the equity from 100 per cent to 51 per cent in case of HPCL and 66 per cent in BPCL without approaching Parliament.
Though HPCL and BPCL were acquired from oil MNCs ESSO and Burmah Shell in 1970s through Acts of Parliament, these were operating under the Companies Act and any change in shareholding pattern would be governed by the same, he said.
Following clarifications sought by former Finance Minister and Leader of Opposition in the Rajya Sabha Manmohan Singh on the suo-motu statement by Shourie, there was turmoil in the House with members of Left parties and RJD walking into the well of the House.
In the Lok Sabha, Opposition parties protested against the statement saying the government should have discussed the crucial issue before taking a decision which they were coming to know through media and staged a walk-out.
In his identical statement in both Houses of Parliament, Shourie said the government would disinvest in HPCL through strategic sale and in case of BPCL through sale of shares to the public.
Besides, a percentage of equity in the two oil PSUs would be kept for the employees at a concessional one-third price, Shourie said, adding, a disinvestment fund would also be created from the sell-off proceeds for financing fresh employment opportunities and investment and for retiring public debt.
Later, Shourie told reporters that the quantum of equity to be divested in the two corporations would be decided at the meeting of the Cabinet Committee on Disinvestment, which would be held after the Gujarat elections on December 12.
Asserting that there were no legal hurdles in divestment of HPCL and BPCL as his ministry had examined all the issues, Shourie said all the issues raised by Manmohan Singh and others would be addressed at the meeting of the CCD for which he would take further opinion of others including the Law Ministry.
The decision for strategic sale of equity in HPCL and public offer in case of BPCL was part of a formula unanimously adopted at a meeting of the senior Cabinet colleagues called by Prime Minister Atal Bihari Vajpayee on December 5 to end the stalemate.