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CCD clears HOCL, MSTC divestment

The government said on Wednesday there was unanimity of views on the divestment proposals and gave in-principle approval for large-scale divestment in Hindustan Organics Limited and Metal and Scrap Trading Corporation.

"There was a complete unanimity on policy of divestment and several suggestions with regard to the implementation modalities have been made, which have to be borne in mind for an effective implementation of the divestment process," Divestment Minister Arun Jaitley told reporters after a meeting of the Cabinet Committee on Divestment.

While the CCD gave approval to reduce government's equity in HOCL to 26 per cent from the current 58.61 per cent, it decided to sell government's entire stake of more than 90 per cent in MSTC, Jaitley said.

Jaitley said the strategic sales in these two undertakings had already been recommended by Divestment Commission and that these recommendations had been accepted.

''These were the only two specific companies which were on the agenda and which were discussed today," he said when asked whether there were deliberations on divestment in the oil sector companies.

Petroleum and Natural Gas Minister Ram Naik also refused to say whether there were any discussions on divestment in the IBP. ''All meetings are successful'', he said when asked whether the CCD meeting was successful.

Besides Jaitley and Naik, others who attended the meeting included Civil Aviation Minister Sharad Yadav, Minister of State for Steel, B K Tripathi and Deputy Chairman of Planning Commission, K C Pant.

Divestment in PSEs should be gradual and with care: Joshi

Divestment of government holding in select public sector enterprises should be done gradually and with care so as to improve the efficiency of such units, Minister for Heavy Industries and Public Enterprises Manohar Joshi said on Wednesday.

"Divestment has been an useful plank in installing efficiency and competition. This policy as announced by the government is to be implemented with care, gradually and on a case to case basis," Joshi said inaugurating a seminar on 'Restructuring of PSEs, Issues, Reforms and Perspectives'.

Joshi said that divestment process should be carried out in a manner that would not affect the interests of the country.

"We do not want multinational's to take over the economy of the country. PSEs have to enrich their management competence and the new policy enthrones productivity, efficiency and profitability as the prime determinants of their functioning," he said.

Government had already divested in 39 PSEs and have realised an amount of Rs 200 billion in the last one decade.

Two major companies Indian Petrochemiclas Corporation Limited and Bharat Aluminum Company Limited are in the process of finding strategic partners, he said.

PTI

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