NEW DELHI: "The Cabinet Committee on Disinvestment (CCD) has agreed to sell the government's residual shareholding in five companies," Disinvestment Minister Arun Shourie told a press conference after a cabinet meeting here. The five state-run firms, he said, are computer maintenance firm CMC, oil major IPCL, telecom giant Videsh Sanchar Nigam Ltd (VSNL), petroleum retail company IBP and aluminium maker Bharat Aluminium Corporation. "The CCD also approved the proposals to appoint advisors for the purpose (of finding strategic partners for the residual stake)," Shourie added. The management control of CMC was handed over to Tata Sons in October 2001 through sale of 51 percent equity for a consideration worth 1.52 billion. The government still holds 26 percent in the company. The government approved the sale of its 26 percent equity in IPCL, one of India's leading petrochemicals company, to private sector Reliance group in May 2002 for 14.91 billion. Nearly 40% in IPCL rests with the government. While the government sold off 51 percent stake in Bharat Aluminium Corporation Ltd. to Sterlite Industries in February 2001 for 5.51 billion, it continues to control 49 percent equity in the aluminium company. Similarly, the government holds 26 percent and 28 percent in IBP and VSNL respectively after offloading a part of its shares to strategic partners in February 2002. Shourie didn't give any timeframe for completion of the process of selling off the government's remaining stakes in the five companies.
Source: IANS