PM, Cabinet colleagues discuss divestment issue

In an apparent bid to resolve the row over divestment in public sector units including the one involving Hindustan Petroleum and Bharat Petroleum, Prime Minister Atal Bihari Vajpayee held an informal meeting of senior Cabinet ministers in New Delhi on Thursday.

The meeting was also attended by Deputy Prime Minister L K Advani, Defence Minister George Fernandes, Finance Minister Jaswant Singh, Petroleum Minister Ram Naik and Divestment Minister Arun Shourie.

The meeting assumes importance in the wake of approaching December 7 deadline set by the Cabinet Committee on Divestment to sort out the contentious issues particularly relating to the mode and quantum of sale of government equity in the two oil PSUs.

The informal consultations started immediately after a formal meeting of the Union Cabinet, which is understood to have cleared amendments to the Competition Bill among other things.

It was not clear if the reported compromise formula of selling equity in HPCL to a strategic partner and a public offer of shares in BPCL was being discussed as part of efforts to bring a unanimity of views within the Cabinet.