Government finally gives okay for divestment
New Delhi: The cabinet committee on disinvestment besides giving its approval for the sale of the state holding in four state-run companies, including oil marketing firm IBP, decided to streamline the disinvestment approval procedures to cut delays.

The government, which currently holds 59.59 per cent of the equity in IBP, will retain a 26 per cent stake in the company after the divestment. The buyer of the IBP shares will have to abide by the administered price mechanism till April 2002, when the sector will be opened up. IBP owns 1,514 of the 17,600 petrol and diesel dispensing outlets in the country. Almost 60 per cent of its retail outlets are in the northern region.

The cabinet committee also decided to reduce government holding in state-run trading firms State Trading Corporation and MMTC to 26 per cent, from its current level of 91 and 99 per cent respectively.
Back to News Review index page