labels: industry - general, governance
No divestment in profitable PSUsnews
17 August 2005

New Delhi: The finance minister, P. Chidambaram, informed the parliament on Tuesday that the Government has decided to formally call off the divestment of stake through strategic sale in 13 profit-making CPSEs. The government, instead, will consider some other form for divesting its stake in profit making central public sector enterprises (CPSEs) instead of strategic sale of equity.

"In keeping with the national common minimum programme guidelines, it has been decided to formally call off the divestment process through strategic sale in the case of 13 profitable CPSEs," Chidambaram said.

They are Manganese Ore India Ltd, Sponge Iron India Ltd, Shipping Corporation of India Ltd, National Building Construction Corporation Ltd, National Fertilisers Ltd, Rashtriya Chemicals and Fertilisers Ltd, Hindustan Petroleum Corporation Ltd, Engineers India Ltd, Balmer and Lawrie and Company Ltd, Engineering Projects India Ltd, Hindustan Paper Corporation Ltd and State Trading Corporation of India Ltd.

Later, Chidambaram told newspersons that strategic sale is not a transparent method. "I believe that strategic sale is no longer the proper approach to adopt. It raises more questions and is not the preferred route,'' the Finance Minister said. The Government, instead, is considering the public offer route to sell minority stakes in CPSEs.

Chidambaram said sick public sector companies must be wound up. "Totally sick companies are a drain on resources. They have to be wound up," Chidambaram said, winding up the discussion on supplementary demands for grants of Rs14,661 crore, with cash outgo of Rs6,818 crore for the current fiscal.

The Rajya Sabha approved supplementary demands by a voice vote. The Lok Sabha had earlier passed the demand.

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No divestment in profitable PSUs