The Hindu : HPCL-BPCL issue deferred

Online edition of India's National Newspaper
Saturday, Dec 28, 2002

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HPCL-BPCL issue deferred

By Sushma Ramachandran

NEW DELHI Dec. 27. The Cabinet Committee on Disinvestment today deferred the controversial issues relating to the sale of Hindustan Petroleum Corporation Limited and the initial public offer of Bharat Petroleum Corporation Limited since the Attorney-General's opinion has not been received yet. The AG had been asked to give his views on the legality of the privatisation of nationalised companies and on whether the previous legislation should be revoked.

Briefing mediapersons after the CCD meeting, presided over by the Prime Minister, Atal Behari Vajpayee, the Disinvestment Minister, Arun Shourie, said a decision had been taken, however, to allow the two giant fertilizer cooperatives in the public sector — IFFCO and KRIBHCO — to participate in the bidding for other fertilizer PSUs. They could thus take part in the bidding for National Fertilisers Limited (NFL) and FACT. In the case of NFL, bidding was going to be held afresh following the recent announcements on the new fertilizer policy which would benefit the company substantially. Regarding the deferment of a decision on HPCL and BPCL, Mr. Shourie said the AG had to go to Mumbai following the demise of the eminent jurist, Nani Palkhiwala. This had caused a delay in getting his opinion. "Whenever his opinion is made available, we will discuss the issue,'' he said.

Many issues were proposed to be raised at the meeting by both the Disinvestment and the Petroleum Ministries, particularly on whether other public sector companies could bid for HPCL and BPCL, in view of the keen interest shown by oil PSUs such as the Oil and Natural Gas Corporation. Mr. Shourie said the bidding for the sale of the Delhi Centaur Hotel and Chefair would now be deferred pending a final decision on making the Delhi airport a joint venture for its expansion plans. This would make need for an airport hotel even greater and the land would become more valuable after the expansion. It had also been decided to include a clause to ensure that the land was used only for a hotel in view of the importance of having a first class establishment near the airport. Mr. Shourie clarified that the CCD did not say that a clause would be included to prevent resale as had been done in the case of the Mumbai Centaur.

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