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'Bidders withdrawing due to halt in divestment'

Almost resigned to a setback in the divestment process, Divestment Minister Arun Shourie on Friday said bidders for the government equity in public sector units were withdrawing due to a virtual stoppage of the process.

"Jab dukan hi bandh ho gayee to khareedar kitni der baahar khade rahenge (When the shop itself is shut, how long will buyers keep waiting outside it)?" Shourie told journalists when asked about reports of some major bidders withdrawing from the race for equity in PSUs.

Asked about the privatisation of oil PSUs Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd in view of the approaching December 7 deadline set by the Cabinet Committee on Divestment for taking a decision, Shourie said, "The prime minister knows about it."

CCD had deferred a decision on sale of equity in HPCL and BPCL for three months till December 7 in a bid to arrive at a consensus on the issue, shortly after Defence Minister George Fernandes had suggested a review of the divestment process for any necessary course correction.

Shourie did not reply to any other query saying, "I do not want to say anything more."

It was, however, not clear whether any consultations were being initiated by either Prime Minister Atal Bihari Vajpayee or Deputy Prime Minister L K Advani amid reports earlier this week that an informal meeting called by Vajpayee on the issue was called off at the last minute.

Asked about what the government was doing on withdrawal of bidders from the race, Shourie said, "It is natural that they will withdraw. We keep reading about it everyday in newspapers."

Earlier, Divestment Secretary Pradeep Baijal had said that deferment of a decision on oil PSUs had led to a situation where cooperation was not forthcoming from officials in the administrative ministries and executives of PSUs that were put on the block.

"The divestment process has slowed down very much after the three-month deferment of a decision on HPCL and BPCL. There is an increase in the opposition to the disinvestment process. Cooperation from administrative ministries, bureaucrats and PSU officials is far less now," he told PTI earlier this week.

Asked about the next step, Baijal said, "We have referred issues relating to various PSUs to the appropriate forum for guidance."

Baijal said Nalco divestment process had come to a virtual halt due to intervention of the state government and opposition from Mines Minister Uma Bharti.

The privatisation of National Fertilisers Limited was being delayed with Fertiliser Minister S S Dhindsa linking the issue with long-term fertiliser policy, he said, adding this was referred to Cabinet Committee on Economic Affairs.

Likewise, some issues raised by Heavy Industry Ministry had delayed the divestment of PSUs under the administrative control of the ministry, he added.

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