The Hindu : Disinvestment in GFCL approved

Online edition of India's National Newspaper
Sunday, May 04, 2003

Southern States

Southern States - Andhra Pradesh

Disinvestment in GFCL approved

By Our Staff Reporter

HYDERABAD May 3. The State Cabinet Sub-committee has approved disinvestment of the 25.88 per cent stake held by the Government in the Godavari Fertilizers and Chemicals Ltd. The process is to be completed within three months.

According to an official release, the bid process will start on May 10 through issue of an advertisement. It will close after six weeks.

The Implementation Secretariat had recommended divestment of the Government share in GFCL in August 2001 after a thorough examination of the company's request for additional investments.

The Government had also offered to divest its holding to IFFCO and sought the firm's views on the disinvestment plans. In February this year, IFFCO finally communicated to the Government its decision to retain its shareholding and intimated that it was not interested in buying out the Government share.

According to D.K. Panwar, chairman of the Implementation Secretariat and Principal Secretary to the Government, fertilizer manufacturers from South Africa and Tunisia have already contacted the secretariat in connection with GFCL. He said GFCL would be the first "big ticket'' disinvestment in AP and there will be very large national and international interest in the disinvestment.

The release said GFCL enjoyed a market share of about 68 per cent in the diammonium phospate (DAP) in the State.

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