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Home  » Business » Difficult to meet divestment target: Govt

Difficult to meet divestment target: Govt

Source: PTI
Last updated on: December 03, 2003 16:31 IST
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The government on Wednesday admitted that it would be difficult to realise the targeted Rs 13,200 crore (Rs 132 billion) from divestment due to serious constraints arising as a fallout of the Supreme Court's judgement on Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd selloff.

"There are apprehensions, however, about meeting the target in the face of serious constraints arising as a fallout of the Supreme Court judgement relating to HPCL and BPCL divestment," Divestment Minister Arun Shourie said in a reply to Lok Sabha.

Till November 20, about Rs 1,335 crore (Rs 13.35 billion) had been realised from divestment which is a little over 10 per cent of the target of Rs 13,200 crore for 2003-04.

On the status of divestment of other oil PSUs, he said, "Currently there is no decision to divest in Oil India Ltd, Indian Oil Corporation, Oil and Natural Gas Corporation and Gas Authority of India."

The minister, however, replied in the negative to a question on whether the government has agreed to the demand from Assam and other North Eastern states not to divest these oil PSUs.

Shourie said that the divestment process in oil PSUs -- HPCL and BPCL -- has been suspended in compliance with the Supreme Court verdict.

The apex court in its judgement on September 16 on HPCL and BPCL divestment had restrained the Centre from proceeding with divestment in the two PSUs without appropriately amending the relevant statutes.

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