The Hindu : A-G clears disinvestment of oil PSUs

Online edition of India's National Newspaper
Tuesday, Jan 21, 2003

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A-G clears disinvestment of oil PSUs

New Delhi Jan. 20. The Attorney-General, Soli Sorabjee, is understood to have given a favourable opinion on disinvestment of the oil public sector undertakings, HPCL and BPCL, which were acquired and nationalised in the 1970s through Acts of Parliament.

Following the ``well-considered, careful and guarded opinion,'' the Government need not go to Parliament for amending or repealing the Acts concerned, prior to the privatisation of the two oil PSUs, sources said. The Cabinet Committee on Disinvestment is likely to meet by the end of the month for considering the various issues relating to the privatisation of HPCL, through strategic sale of equity, and the BPCL, through a public offer.

Earlier in the day, Mr. Sorabjee wrote to the Disinvestment Secretary, Pradeep Baijal, asking whether any notification had been issued under Section 620 of the Companies Act in relation to HPCL and BPCL. Even as Mr. Baijal sought the information from the Petroleum Ministry, which relates to whether or not the Government had given certain exemptions to the two oil PSUs, Mr. Sorabjee sent his opinion in a sealed cover to the Disinvestment Secretary, who, in turn, informed the Disinvestment Minister, Arun Shourie. Mr. Shourie, however, declined to give any details.

Mr. Sorabjee's opinion assumes importance in the wake of reiteration by the Prime Minister, Atal Behari Vajpayee, at Port Blair today that disinvestment was an irreversible process and that there were no fundamental differences within the National Democratic Alliance coalition on this.

According to sources, the Petroleum Ministry had not yet responded to the query from Mr. Baijal, who was not available for comments.

After the Government announced its decision to disinvest in the two oil PSUs in Parliament, Mr. Shourie had conceded to the Opposition demand of taking the Attorney-General's opinion about the sale of equity in the two corporations. Mr. Sorabjee is understood to have taken into account the relevant Acts which did not specifically provide for the Government to take permission before selling the equity, unlike the Coal or Bank Nationalisation Acts.

PTI

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