Buoyed by the overwhelming response to the public offer for its stake in Maruti, the government on Thursday decided to sell its remaining shares to public in the five privatised companies.
These include the Tata-controlled Videsh Sanchar Nigam Ltd, and the Reliance-managed IPCL, through the initial public offering route.
As part of the decision taken at a meeting of the Cabinet Committee on Divestment, chaired by Prime Minister Atal Bihari Vajpayee, the government would also sell its equity in aluminium major Balco, oil marketing company IBP and IT company CMC, controlled by Sterlite Industries, Indian Oil and the Tatas, respectively.
Showing the urgency to go ahead with the IPOs, Divestment Minister Arun Shourie told reporters after the CCD meeting that he would start discussions with strategic partners -- Tatas, Reliance, Sterlite Industries and Indian Oil -- next week for their consent to the public offering.
He said the government would take caution against any overcrowding of the market and there would be no 'distress sale' for offloading its 26 per cent equity each in CMC, VSNL and IBP, 33.95 per cent in IPCL and 49 per cent share in Balco.
The government would also take recourse to public offering for the sale of 20 per cent equity in Dredging Corporation of India Ltd where the proceeds, matched by an equivalent amount from the finance ministry, would be ploughed back for modernisation and renovation of its fleet, Shourie said.
To further accelerate the divestment process, the CCD also cleared the draft shareholder, share-purchase agreements for privatisation of National Fertilisers Ltd, Hindustan Copper Ltd and Hindustan Organics Chemicals where financial bids from short-listed qualified bidders would be called soon.
The government would also dip into the coffers of profit-making NFL drawing Rs 300 crore (Rs 3 billion) for dividend distribution prior to its privatisation.
The CCD also decided for outright sale of Mineral Exploration Corporation Ltd by offloading 100 per cent equity to a strategic partner.
It also cleared amendments to revised joint venture agreement with Suzuki Motors following the latter's unilateral offer to extend certain clauses in the agreement.
No IPO planned for SCI
Ending all uncertainties about privatisation route of the Shipping Corporation of India, the government on Thursday said it had no plans to divest it's state in the shipping major through a public offer.
Divestment Minister Arun Shourie told reporters that his ministry was currently ascertaining whether K-Line of Japan, the sole international bidder was still in contention.
As many as three bidders had inked the confidentiality agreement with the government including Essar Group, Sterlite Industries and Videocon while there was no confirmation over the sole international bidder.
The government had decided to invite fresh bids for SCI following a poor response from foreign bidders in the first round.
While inviting fresh bids government had lifted the 25 per cent cap on foreign partners to facilitate participation by overseas bidders.
The government proposes to offload majority 51 per cent stake in the company to a strategic partner along with management control while reserving a small portion for the employees.
Post divestment, government equity would stand reduced to around 26 per cent from the current around 80 per cent.
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