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IndianOil not yet selected for disinvestment: Naik
Monday, 06 October 2003, 19:30 IST
NEW DELHI: Petroleum Minister Ram Naik Saturday clarified that no oil company has been selected as yet for disinvestment in place of Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL).
Denying that plans to bifurcate the Indian Oil Corporation (IndianOil), the country's only Fortune 500 company, were discussed at a cabinet meeting Friday, Naik said: "Nothing has been finalised."
"The issue needs to be studied more thoroughly. At the cabinet meeting we decided to consider three options, but have yet finalised any decision," Naik told IANS.
Stating that IndianOil "is a flagship company besides being a strategic company, we have all along stated that the government will never dilute its stake in it below 51 percent", said Naik.
He ruled out any strategic sale of government stake in the company.
Among the three options to be considered by the disinvestment ministry for offloading stake in oil public sector undertakings, he said, were: "First, go to Parliament to enact legislation to allow sale of stake in HPCL and BPCL. Second, to seek a review of the Supreme Court order or a clarification on what the order means. And, third, divest any other oil company.
"No decision has been taken. The issue needs to be thoroughly examined. Within three months the options will be discussed and reported to the cabinet," said Naik, who will be part of the exercise along with Disinvestment Minister Arun Shourie.
Briefing media after the cabinet meeting Shourie had said: "One of the options being considered (by the government) is swapping IndianOil (for disinvestment) and keeping HPCL and BPCL with the government till other options are examined."
The government had planned to sell 35.2 percent equity in BPCL through public offer in domestic and international markets, and 34.01 percent equity shares of HPCL to a strategic buyer.
But with the Supreme Court ruling that the sale of the two oil refining and marketing majors needs Parliament approval, the process has been stalled.
The Centre for Public Interest Litigation and the Oil Sector Officers' Association had filed petitions in the Supreme Court challenging the government decision to privatise HPCL and BPCL without Parliament's approval, because the companies had been set up under special acts.
HPCL and BPCL together control 48 percent of India's two million barrel-a-day retail market for petroleum products.
In a statement Saturday, the Communist Party of India (Marxist) flayed the government for considering privatisation of IndianOil, the 17th largest petroleum company in the world.
The government holds 82.3 percent stake in IndianOil, which in 2002-03 has contributed 
330.07 billion to the federal exchequer by way of dividend and taxes.
The company recorded net profits of 65.79 billion after paying dividends, taxes and duties.
"The destruction of such a valuable public asset is nothing but unbridled loot," said the CPI-M.
Alleging that the government "is virtually killing the goose that lays the golden egg", the party accused New Delhi of trying to create private monopolies through the disinvestments of stakes in profitable companies.
Source: IANS
330.07 billion to the federal exchequer by way of dividend and taxes.
The company recorded net profits of 65.79 billion after paying dividends, taxes and duties.
"The destruction of such a valuable public asset is nothing but unbridled loot," said the CPI-M.
Alleging that the government "is virtually killing the goose that lays the golden egg", the party accused New Delhi of trying to create private monopolies through the disinvestments of stakes in profitable companies.
Source: IANS