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Sell-off cleared in 11 PSUs -- Maruti, VSNL, MTNL not in 33-PSU plan

Our Bureau

NEW DELHI, June 23

The Cabinet Committee on Disinvestment (CCD) today accorded in-principle clearance for disinvestment in 11 public sector undertakings (PSUs) for this fiscal and firmed up an annual disinvestment plan involving 33 firms.

But contrary to expectations, blue-chips such as Maruti Udyog Ltd, Mahanagar Telephone Nigam Ltd, Videsh Sanchar Nigam Ltd and the oil PSUs, except IBP, were missing from the disinvestment plan.

Mr. Pradeep Baijal, Secretary, Disinvestment, said the eleven companies which received in-principle clearance today were MMTC, Shipping Corporation of India, State Trading Corporation, IBP, Hindustan Zinc, Hindustan Organic Chemicals, Hindustan Insectici des, Sponge Iron India, Mineral Exploration Corporation Ltd, Hotel Ranchi Ashok and Hotel Utkal Ashok.

The CCD has asked the departments concerned and the Department of Disinvestment (DoD) to prepare Cabinet notes on disinvestment modalities of these PSUs. Some of the schemes, including that of IBP, would be taken up for consideration at the next CCD meet ing around July 12.

Meanwhile, in other oil PSUs, the disinvestment process will be initiated only after restructuring of the oil sector in regard to stand-alone refineries. However, in-principle clearance was accorded to IBP, Mr. Baijal said.

Disinvestment in ten companies which had already been finalised by the Government will be completed this year. These were Balco, IPCL, Scooters India, Bharat Leather, NEPA, HTL, RBL Ltd. (a subsidiary of Bharat Yantra Ltd.), Bharat Brakes, Hindustan Late x (minority disinvestment) and Hindustan Copper.

The CCD also directed that the disinvestment cleared earlier by the Government in the case of Engineering Projects of India, Instruments Ltd, Kota and Jessop & Company be expedited.

``Disinvestment in Maruti, MTNL, VSNL, etc, were discussed. But these PSUs do not form part of the Government's annual disinvestment plan,'' Mr. Baijal said.

The Minister in-charge of Disinvestment, Mr. Arun Jaitley, said the proposed annual disinvestment plan would help the Government meet its disinvestment target of Rs. 10,000 crores this fiscal.

The meeting held at the Prime Minister's residence was attended by Mr. Jaitley, the Minister for Petroleum, Mr. Ram Naik, the Minister for Chemicals and Fertilisers, Mr. Suresh Prabhu, and the Minister of State for Steel, Mr. B.K. Tripathy, among others.

The CCD also cleared a proposal to privatise Ranchi Ashok and Utkal Ashok and the departments concerned had been asked to expedite the cases. Sale of equity in the two hotels, pegged at a minimum 51 per cent, had to be completed within this year, the Cab inet Committee observed.

Mr. Baijal also said that there were ten cases where the Government had already appointed global advisors and another seven where global advisors would be appointed shortly.