India finalises plan to privatize two oil firms

Monday, 09 December 2002, 20:30 IST
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The Indian government Monday unveiled its roadmap for privatising the two public sector oil majors that was halted in September due to intense political squabbling.

NEW DELHI: The government has decided to sell its stake in the Hindustan Petroleum Corporation Ltd. (HPCL) to a private company and privatise the Bharat Petroleum Corporation Ltd. (BPCL) through a public issue, Disinvestment Minister Arun Shourie told the Lok Sabha. The minister, who made a statement in the house on the sell-off plans of the two companies amidst stiff opposition from the opposition parties, however, did not specify a time-frame for the completion of the privatisation process. The announcement comes close on the heels of a meeting of top ministers, chaired by Prime Minister Atal Bihari Vajpayee, to build common ground to resume the stalled privatisation of the two companies. India's privatisation drive, projected as the cornerstone of the economic reforms programme, has repeatedly come under attack in recent months, with the ruling coalition's allies demanding a review of the divestment agenda. The government raised 48 billion selling state-run companies between April and October this year, less than half of the 120-billion target set for the year to March 2003.
Source: IANS

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