National
Panel submits report on 4 PSUs
By Our Special Correspondent
NEW DELHI, FEB. 5. The Disinvestment Commission has submitted its report on four more public sector undertakings - Neyveli Lignite Corporation (NLC), Manganese Ore (India) Limited (MOIL), Rail India Technical and Economic Services (RITES) and Projects and Equipment Corporation Limited (PEC).
In the case of the first three companies, the Commission has recommended disinvestment of 51 per cent equity while 100 per cent sell-off has been recommended in PEC. The Government will now consider these recommendations.
As for Neyveli, the Commission has also pointed out legal issues which need to be sorted out before disinvestment. For instance, at present only a public sector coal mining company can sell coal to end-users. The question whether a power-generating unit in the private sector can sell coal or lignite to another company for generating power has to be examined.
Consequently, if there is no legal hurdle to a power-generating company becoming a strategic partner, the recommendation is for 51 per cent offloading of equity. If it is otherwise, a 49 per cent equity sale has been suggested.
In the case of MOIL a strategic partner with 51 per cent equity has been recommended. For RITES, 51 per cent sale of equity to employees both past and present has been suggested with the Government holding 25 per cent share. The balance should be distributed among reputed infrastructure consultancy organisations.
As for PEC, the Commission has said that it should be disinvested 100 per cent and the Government should consider a management-employee buy-out.
If that is not feasible, Government has been asked to consider strategic sale of 100 per cent equity to some reputed international trading organisation. In case investors are not interested, there would be no option but to close down the company.
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