The Hindu : CGD considers 4 PSE cases

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Saturday, May 31, 2003

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CGD considers 4 PSE cases

By Our Special Correspondent

NEW DELHI MAY 30. Despite speculation that the process of public sector disinvestment is losing its steam, the Core Group of Secretaries on Disinvestment (CGD) today considered the cases of four companies while also gearing up to finalise the global advisor for diluting equity in Bharat Petroleum Corporation (BPCL).

According to the Union Disinvestment Ministry, the CGD has decided to revert two companies, the Jute Corporation of India (JCI) and the Cotton Corporation of India (CCI), back to the concerned ministry while commencing the process for Dredging Corporation of India (DCI) and the Mineral Exploration Corporation (MEC).

In the case of JCI and CCI, the CGD took the view that disinvestment would not be appropriate since the companies were performing a `sovereign duty' of the Government by implementing the minimum support price (MSP) policy. In both commodities, it is only these two agencies which are available for taking action on the MSP for jute and cotton.

It was therefore decided that there was no need for disinvestment and the companies had been returned to the Administrative Ministry.

As for DCI, the process of disinvestment is sought to be initiated by going in for an initial public offer (IPO). A decision on strategic sale is expected to be considered at a later date, the Ministry says. In regard to MEC, a Nagpur-based company, which is a loss making one, the CGD has decided to opt for the strategic sale. At present, Government equity in the company is 99 per cent.

Simultaneously, the Ministry says the Core Group of Secretaries is going ahead with the process of selecting a global advisor for diluting equity in BPCL through a public issue in the domestic and foreign markets. This indicates, it is stated, that the process of disinvestment is continuing in the case of the controversy-ridden oil companies, BPCL and HPCL.

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