Friday, Dec 06, 2002
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By Sushma Ramachandran
Briefing the media after the meeting, Mr. Shourie said a decision had been taken unanimously on disinvestments and he had been authorised to make a full statement in Parliament giving the details. But he downplayed past dissensions stressing that the decision was taken unanimously. But it was not clear whether the meeting took up the issue only of the strategic sale of the oil sector companies, Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) or it considered a review of the entire process of public sector disinvestments. Although the decision to opt for a three-month pause in disinvestment had been taken when the CCD took up proposals for the strategic sale of HPCL and BPCL on September 7, the Defence Minister, George Fernandes, has been seeking a comprehensive review of the disinvestment process. When contacted, the Petroleum Minister, Ram Naik, also told The Hindu that there had been unanimity at the meeting on the issues discussed but did not indicate the precise areas taken up. Among those who attended the informal CCD which took place immediately after a meeting of the Cabinet earlier in the evening were the Deputy Prime Minister, L.K. Advani, the Finance Minister, Jaswant Singh, the External Affairs Minister, Yashwant Sinha, Mr. Fernandes, Mr. Naik and Mr. Shourie. With this meeting, the Government has fulfilled its commitment of taking a decision on public sector disinvestments relating to HPCL and BPCL after three months. The entire issue became controversial since the Petroleum Ministry was opposed to strategic sale of these companies on the ground that it would be better to opt for initial public offers (IPOs) so that they could raise sufficient resources to carry out expansion plans. The Disinvestment Ministry, on the other hand, felt that the time was ripe for a strategic sale of both the companies as the market was buoyant. In the event, the market crashed after the last CCD meeting in September, prompting the Government to seek an investigation about profiteering and market speculation by the regulator, Securities and Exchange Board of India (SEBI). But it was Mr. Fernandes who really set the cat among the pigeons by demanding a review of the entire disinvestment process, especially of the oil sector companies because of their strategic importance. He was joined in the chorus of opposition to the public sector disinvestments by the Coal and Mines Minister, Uma Bharti, the Civil Aviation Minister, Shahnawaz Hussain, and the Chemicals and Fertilizers Minister, S.S. Dhindsa, as well as the Human Resource Development Minister, Murali Manohar Joshi. The Sangh Parivar added its objections to the sale of national assets even while demanding the resignations of the Ministers concerned. It was no wonder then that the Prime Minister decided to opt for the three-month pause before going ahead with the oil sector disinvestments issue, about which a formal decision will now be announced in Parliament next week. UNI reports: Neither Mr. Shourie nor Mr. Naik was willing to say whether HPCL and BPCL would be disinvested. But sources indicated that a compromise formula had been worked out on the privatisaion of these companies. Asked whether he was satisfied with the ``unanimous" decision, Mr. Naik said ``I am always happy''.
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